Refer to the Scenario Below to Answer the Questions That

question 85

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
Business Expansion Plan (Scenario)
As a business expansion director,Shana's goal is to scout potential locations for her company's planned expansion to other countries.There are many options,some of which include maintaining the business's head office in Canada.Other options include sending company representatives to foreign operations when necessary,or establishing separate operation facilities abroad and hiring locals as managers.
-If Shana's company reorganizes based on industry groups with no designated home country,the entire organization would be considered a ________.

• A)transnational organization
• B)strategic alliance
• C)multidomestic corporation
• D)multinational corporation

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Definitions:

Break-even Point

The production level at which total revenues equals total expenses, resulting in neither profit nor loss.

Mixed Cost

Expenses that have both a fixed and variable component, changing somewhat in response to changes in production volume or activity levels.

Machine Hour

A measure used to allocate costs to products or services based on the number of hours a piece of equipment is operated.

Cost-volume-profit Analysis

A managerial accounting technique used to analyze how changes in costs and volume affect a company's operating income and net income.