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Scenario - T & M Computers

question 12

Multiple Choice

Scenario - T & M Computers
Thomas Benson and Matthew Roderick started a small computer business ten years ago in Rapid City,South Dakota.Armed only with determination and innovative designs,Thomas and Matthew were driven to achieve success for their company,T & M Computers.Their hard work has indeed,paid off.Since the inception of the company,the two owners have watched their business grow and demand for their products increase.
Four years ago due to this high product demand,they went international with their business operations.Thomas and Matthew now have international business operations in Singapore,France,Turkey,and Great Britain.Further operational expansion is anticipated within the next year and the company plans to begin operations in Spain,Greece,and Italy.
The owner's hard work and dynamic ideas have proven quite profitable for the company.Thomas and Matthew are pleased with how their operation has grown into becoming a major international business worthy of competing with Intel and Microsoft.T & M Computers may well be the next giant recognized in the field of computer software.
-Which one of the following would T & M Computers least expect to be a negative influence from the sovereign governments within the nations where their business operations are located?

Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before reaching a loss.

Break-even Point

The point at which total cost and total revenue are equal, resulting in neither profit nor loss.

Break-even Sales

The amount of revenue required to cover total costs, both fixed and variable, at which point a business neither makes a profit nor suffers a loss.

Variable Cost

Overheads that move in sync with the volume of manufacturing or sales, covering labor and material costs.