Firms That Play It Safe and Do Not Enter the Global

question 90

Multiple Choice

Firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets .

• A)but protect themselves from competition at home
• B)but gain a competitive edge against imports in their home markets
• C)and risk losing their home markets
• D)but successfully shield themselves from foreign competition
• E)A and B

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Definitions:

Limited Liability Company

A company formation that merges the direct tax obligations of a partnership or a sole proprietorship with the protection against personal liability offered by a corporation.

Ease of Formation

The relative simplicity and lack of complication in legally establishing a new business or company.

General Partnership

A business arrangement where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Limited Liability Partnership

A business entity where partners have limited liabilities, protecting their personal assets from business debts.