Which of the Following Statements Is True of the International

question 19

Multiple Choice

Which of the following statements is true of the international business strategy of licensing?

• A) It allows a firm to enter a foreign market with relatively little risk.
• B) It provides a firm with its own company-owned facilities in a foreign country.
• C) It requires a huge outlay of capital.
• D) It does not provide market exposure to a firm.

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Definitions:

Balance Sheet

A ledger entry that captures the financial position of a business, enumerating assets, liabilities, and the stake of shareholders at an exact moment.

Original Investments

The initial amount of money or value of assets put into a business or project by its founders or investors.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.

Salary Allowances

Benefits or extra compensation provided to employees on top of their regular salary, often for specific purposes such as transportation, housing, or meals.