Scenario - Lewis Fabrication Lewis Fabrication Was Founded in 2001

Multiple Choice

Scenario - Lewis Fabrication Lewis Fabrication was founded in 2001 and is based in Maryland, USA.  This company manufactures custom designed motorcycle parts and currently has over two thousand U.S. customers.  Due to the growing number of inquiries received from foreign countries such as Japan, Canada, China, and Indonesia, Lewis Fabrication has decided to begin operations on a global scale. The owners realize there is much to learn before undertaking this monumental step.  However, financial projections indicate about $1 million in profit is very likely in the first year of going global.  The owners are very excited and looking forward to the business expansion. In its quest for global expansion Lewis Fabrication must examine its rationales for wanting to expand into the foreign marketplace.  Which one of the following is not a reason why this company would want to expand globally?  

A) To maximize shareholder wealth
B) To minimize risk of failure for the business
C) To increase the revenues of the company
D) To cut costs of production for the company
E) To reduce risks associated with business cycle fluctuations