The Founder of Rainbow Fine China Wants to Open Its

question 115

Multiple Choice

The founder of Rainbow Fine China wants to open its second facility to produce housewares in the United States.However,the finance manager suggests an overseas location would help the company remain competitive,because labor costs are lower in many other countries.To arrive at the decision that will best promote Rainbow's ability to compete,what other HR factors,if any,should the company consider?

• A) access to resources in each possible location
• B) differences in transportation costs from factories to customers
• C) no other factors,because costs determine competitiveness
• D) differences in workforces' education levels and languages
• E) differences in workforces' education,skill,and productivity

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Definitions:

Dividends Account

An account used in bookkeeping to track dividends declared by a company to be paid out to its shareholders.

Retained Earnings

The portion of net profits not distributed as dividends to shareholders but retained by the company for reinvestment or to pay off debt.

Sole Shareholder

An individual or entity that is the only owner of all the shares of a company, thus having complete control over its operations.

Closing Entry

Entries recorded at the conclusion of a financial period for the purpose of shifting balances from temporary to permanent accounts.