Why Would an American Company Like Soft Sheen Want to Use

question 17

Multiple Choice

Why would an American company like Soft Sheen want to use direct ownership to manufacture and market its hair-care products to South Africans?

• A) No overhead costs.
• B) Lack of trade barriers.
• C) Absence of financial risks.
• D) Ability to maintain tight control over its operations.

---

Definitions:

Executory

A term applied to a contract in which not all of the terms have been fully performed.

Doctrine of Substantial Performance

A legal principle acknowledging that if a party has performed enough of its contractual obligations, it may warrant payment, minus damages for incomplete work.

Complete Performance

Contract performance that occurs when all aspects of the parties’ duties under the contract are carried out perfectly.

Complete Performance

The situation where all terms of a contract have been fully met by the parties involved.