A New Facility Built and Operated Overseas That Requires Large

question 52

Multiple Choice

A new facility built and operated overseas that requires large investments of capital is an example of a _____.

• A) subsidiary
• B) multinational enterprise
• C) foreign acquisition
• D) strategic alliance
• E) divestiture

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services received but not yet paid for.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not affect future business decisions.