A Fully Owned Foreign Subsidiary Is a Form of Multinational

question 119

Multiple Choice

A fully owned foreign subsidiary is a form of multinational corporation in which:

• A) a local entrepreneur buys the firm in that foreign country.
• B) the multinational corporation owns and operates the firm by itself.
• C) the foreign government gives its full cooperation.
• D) the venture is jointly controlled with a local domestic partner.

---

Definitions:

Partnership

A form of business where two or more people agree to contribute resources to start and operate a business together.

Entrepreneur

An individual who creates, organizes, and operates a business venture, taking on greater than normal financial risks in order to do so.

Business Plan

A formal document detailing a business's objectives, strategies, target market, and financial projections.

Limited Liability Corporation

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.