D080 WGU Unit 5 Test Review |Graded A+| 100% Correct

D080 WGU Unit 5 Test Review |Graded A+| 100% Correct A global company that makes promotional products, like those for corporate gifts, allows customers to engrave their corporate name and logo onto finished products. The company then ships these products to the customers. Which production process is the company using? *Ans* Mass customization A high-end global computer company concludes that it needs to concentrate on gaining production efficiencies with its manufacturing processes. The company decides to outsource the manufacturing of key strategic parts of its products to Vietnam. Why does this company decide to utilize outsourcing? *Ans* To reduce costs A German company is considering outsourcing the manufacturing process to Japan. Some of the executive board directors are concerned that the Japanese company may not follow the exact production processes the German company normally uses. Which risk represents this concern? *Ans* Loss of control A company is considering using a direct distribution strategy. What is a disadvantage of this distribution strategy? *Ans* Required to arrange for transportation Which distribution strategy has grown rapidly due to the increase in e-commerce? *Ans* Direct channel distribution Which source of funding uses technology platforms to invite consumers to invest small amounts in support of a business idea or venture? *Ans* Crowdsourcing A company in the United States has encountered a financial reporting situation that is not currently addressed by the accounting standards of the country. How should the U.S. company proceed? *Ans* Consult with the FASB Which type of risk refers to the impact of random change in the value of one currency with respect to other currencies? *Ans* Currency risk Which term defines using currency derivatives to reduce potential currency risks due to currency exchange rate movement that could lead to losses for a firm? *Ans* Hedging A company has achieved a monetary advantage by using a fronting loan with a subsidiary in a country with a low corporate income tax rate. Which type of tax situation in this country allows the company to achieve this monetary advanta