Assume That an American Firm Wants to Engage in International

question 18

Multiple Choice

Assume that an American firm wants to engage in international business without making a major investment in the foreign country. Which method is least appropriate in this situation?​

• A) ​international trade
• B) ​licensing
• C) ​franchising
• D) ​direct foreign investment

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Definitions:

Net Income

The financial gain a company achieves once all expenses, taxes, and other costs are subtracted from the total sales.

Owner Withdraw

The process by which the owner of a business takes out funds from the business for personal use.

Chronological Diary

A personal record of events or experiences, organized in the order that they occurred over time.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity, balancing the total value of resources with the sources of those resources.