Which of the following is not a motivation for a company to pursue international expansion?
A. It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk.
B. It wishes to increase foreign market penetration by developing products for the home market.
C. It wishes to take advantage of arbitrage opportunities to increase profit.
D. It wishes to increase the size of the potential markets for its products and services.
Answer: B
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Why might a firm use the quick ratio instead of the current ratio in its liquidity analysis?
a. It wants to target long-term debt instead of short term debt. b. Its accounts receivable are greater than its cash. c. Its inventory is not very liquid. d. It considers the cash flow amount in the quick ratio more important than the other liquidity ratios. e. Its notes receivable are greater than its cash.
Most entrepreneurs have little difficulty with gathering market information.
Answer the following statement true (T) or false (F)
Any capital budgeting decision should depend solely on a project's forecasted cash flows and the firm's opportunity rate of return. Such a decision should not be affected by managers' tastes, the choice of accounting method, or the profitability of other independent projects.
Answer the following statement true (T) or false (F)
Which of the following is a technological limitation of EC?
A) security and privacy concerns that deter customers from buying B) difficulty obtaining venture capital C) order fulfillment requirements of large-scale B2C D) unresolved taxation, public policy, and legal issues