Which of the Following Is True About Direct Investment as a Mode

question 19

Multiple Choice

Which of the following is true about direct investment as a mode of international expansion?

• A) It allows a firm to retain full control over its investment.
• B) It yields lower returns than joint ventures.
• C) It involves the least amount of risk.
• D) It involves the least cost.
• E) It does not allow the firm to diversify.

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Definitions:

Stop-Payment Order

A request made to a bank to cancel a check or payment that has not been processed yet.

Bankruptcy Petition

A formal request filed by an individual or business entity declaring inability to pay outstanding debts, seeking relief through bankruptcy court.

Stale Check

A check that is more than 90 days past the date on its face; banks do not owe a duty to their customers to pay any such checks more than six months past the dates on their face.

Good Faith

Good faith refers to an honest intention to act without taking an unfair advantage over another party, often emphasized in contractual agreements and negotiations.