Answer: ✓ an intermediate goal that affects a long-term goal
Answer:
Net present value $1,363.50
Explanation:
The computation of the net present value of B is shown below:
Year Cash flows PVIFA factor at 15% Present value
0 -$15,600 1 -$15,600
1 0 0.8696 0
2 0 0.7561 0
3 25,800 0.6575 $16,963.50
Net present value $1,363.50
Answer:
a. take advantage of underpriced labor services available in certain developing countries.
b. gain access to special R&D capabilities residing in advanced foreign counties.
c. boost profit margins and create shareholder value.
d. avoid regulations and lower tax burdern
Explanation:
Multinational corporation is a company that operates locally in its home country and also aborad. It usually maintains a central office that coordinates business activities.
MNCs have various advantages which includes:
- taking advantage of lower priced labour in developing countries, for example some companies take advantage of cheap labour in China to produce their goods.
- when a company operates in an advanced economy it will take advantage of research and development there.
- regulations and tax burdens can be avoided by setting up manufacturing plants in countries with low regulatory policies.
- MNCs boost shareholder profits by taking advantage of their multiple locations to gain more profits.
Answer:
The correct answer is letter "B": record revenue only after you have earned it.
Explanation:
Revenue Recognition is an accounting term that describes how and when a company reports revenue in its ledger. It is also part of the Generally Accepted Accounting Principles (GAAP). Using the accrual accounting method, revenue must be recorded when it is earned not when the company collects the cash proceeding.
