When a Small Business Owner Is Thinking of Going Global

question 8

Multiple Choice

When a small business owner is thinking of going global, he or she should first decide whether

• A) the firm has the necessary "deep pockets" to follow through.
• B) domestic operations are capable of subsidizing overseas operations.
• C) the firm has the technology necessary to get into the international game.
• D) the company is up to the task.

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Definitions:

Subrogation

is a legal doctrine allowing one party (usually an insurer) to step into the shoes of another party to pursue rights or claims against a third party, often to recover amounts paid out in a claim.

Surety

A form of financial guarantee, wherein one party (the surety) agrees to take on the financial obligations of another if they default.

Reimbursement

The act of compensating someone for an expense incurred, often associated with business expenses or insurance claims.

Real Defense

A legitimate legal defense that can be used to void a contract or document, typically in cases of fraud or invalidity.