As a Result of CFTA,the U

question 41

Multiple Choice

As a result of CFTA,the U.S.automakers participate in the Canadian auto market,thereby benefiting due to:

• A) greater economies of scale.
• B) decreased production costs.
• C) reduced competition.
• D) ease of exporting automobiles.
• E) creating a continental demand.

---

Definitions:

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable net assets, representing expected future benefits from synergies, brand, and customer loyalty.

Investment

An asset or item acquired with the goal of generating income or appreciation in value.

Stockholders' Equity

The portion of a company's capital that belongs to the shareholders, calculated as the company's total assets minus its total liabilities.

Consolidated Statement

Financial statements that combine the accounting information of a parent company with its subsidiaries, presenting it as a single economic entity.