Refer to the Scenario Below to Answer the Questions That

question 46

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
First Business Trip to Asia (Scenario)
Jeff Elliott is on a flight across the Pacific and is excited about his first business trip to Asia.Born and raised in Alberta,Jeff is a manager for a rapidly growing Calgary-based company.His current mission is to scout out potential locations in Asia and develop an international expansion strategy for his company.There are many options,including maintaining the businesses head office in Canada and sending over company representatives when necessary,or developing a separate company in Asia and hiring locals to manage the business.Jeff's trip will take him to Japan,Korea,Hong Kong,Taiwan,and Thailand.He is looking forward to learning more about the business practices and customs of each country,and he is not too worried about the fact that he only speaks English.Jeff has heard that English is considered the main international business language and he anticipates that most Asians will be able to speak it.
-If Jeff's company decided to open another company in Taiwan but manage it from its headquarters in Canada,it would be considered a ________.

• A)transnational corporation
• B)global business alliance
• C)regional trade alliance
• D)multinational corporation
• E)borderless organization

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Definitions:

Investment by Owner

The contribution of cash or other assets by an owner into their business, increasing the equity of the company.

Deficit

The amount by which expenses surpass income or revenues, resulting in a loss.

Retained Earnings

Profits that a company has reinvested in itself rather than paying out to shareholders as dividends.

Comprehensive Income

This term includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.