Before Doing Any Business Internationally, a Company Must Look at the Conditions

question 37

True/False

Before doing any business internationally, a company must look at the conditions in a potential country to analyze what the advantages, disadvantages, and costs will be and whether it is worth the risk.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales or revenue; calculated by dividing sales or revenue by total assets.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets.