Companies that go global confront several major risks. Describe three of these risks
What will be an ideal response?
Companies that go global may face unstable governments and currencies abroad, as well as restrictive government policies and regulations designed to protect domestic companies or to protect the culture. High trade barriers are another issue. Also, some companies have to deal with corruption abroad, as some officials award business contracts to the highest briber.
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The discount rate used in net present value calculations is the company's minimum rate of return
Indicate whether the statement is true or false
Benchmarking against direct competitors creates the risk of
a. creating products or services with identical specifications. b. becoming stagnant relative to process improvements. c. being taken over by the competitors to prevent a loss of ideas. d. all of the above.
Current ratio is computed by dividing the ________ by the current assets
a. current liabilities b. working capital c. current stock d. long–term debt
Regarding sampling procedures, the more confident an auditor wants to be, the smaller the sample size that must be examined
Indicate whether the statement is true or false