D080 study guide questions and answers with solutions 2025

A company would like to obtain the benefits of outsourcing and focus solely on marketing activities and research and development. Which advantage is this company hoping to achieve? - ANSWER Enhanced core business activities A company is considering using a direct distribution strategy. What is a disadvantage of this distribution strategy? - ANSWER Required to arrange for transportation A car manufacturing company manufacturers tires in Countries A, B, and C. Country A has significant political turmoil that has resulted in a lengthy labor strike. Countries B and C have ramped up production resulting in sustained tire production for the company. Which practice has the company used to optimize its production efficiency? - ANSWER Multinational production A company in the United States is considering a joint venture with a French supplier and needs to learn about the accounting standards used in France. How should the U.S. company approach this situation? - ANSWER Study the International Financial Reporting Standards (IFRS) online A multinational company moves key production assets to a country with lower tax rates to avoid paying more taxes in the home country. Which type of pricing should be used to reduce taxes during production? - ANSWER Transfer 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? - ANSWER Loss of control A company is considering using a direct distribution strategy.