Consider Firm A and Firm B that both produce the same product. Firm A would more likely have more stable cash flows if its percentage of foreign sales were ____ and the number of foreign countries it sold products to was ____.
A) higher; large.
B) higher; small
C) lower; small
D) higher; large

Question

Quizplus · Accepted Answer

A higher percentage of foreign sales and a large number of foreign countries can diversify revenue sources, reducing reliance on any single market and stabilizing cash flows.

Consider Firm a and Firm B That Both Produce the Same