One advantage of direct investment when entering a new global market is that
A. intermediaries have the potential to harm the brand.
B. the company forgoes control over its product.
C. this method is likely to provide the fewest subsidies from the host country's government.
D. the firm gains and uses a better understanding of local market conditions.
E. the firm entering the foreign market does not have to pay royalties to the government.
Answer: D
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When stockholders make an investment, the Common Stock account is debited
Indicate whether the statement is true or false
Stocks differ from bonds because:
A) bond cash flows are known while stock cash flows are uncertain. B) firms pay bond cash flows prior to paying taxes while stock cash flows are after tax. C) the ending par value of a bond is known at purchase while the ending value of a share of stock is unknown at purchase. D) All of the above
Dietrick Corporation produces and sells two products. Data concerning those products for the most recent month appear below: Product B32LProduct K84BSales$46,000 $27,000 Variable expenses$13,800 $14,670 Fixed expenses for the entire company were $42,550. If the sales mix were to shift toward Product B32L with total sales remaining constant, the overall break-even point for the entire company:
A. could increase or decrease. B. would not change. C. would increase. D. would decrease.
Examples of the huge risks that "zombie S&Ls" undertook include
A) building shopping centers in the desert. B) buying manufacturing plants to convert manure to methane. C) purchasing billions of dollars of junk bonds. D) all of the above. E) only A and B of the above.