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:

Note Payable

A written agreement where one party promises to pay another party a specific sum of money at a determined future date or on demand.

Interest Expense

The cost accrued on borrowed funds, reflected as a financial charge for the use of the lender's money.

FICA Withholding

Taxes that are automatically deducted from an employee’s wages for Social Security and Medicare, as mandated by the Federal Insurance Contributions Act.

Tax Rate

The percentage at which an individual or corporation is taxed, varying by income or profits level and jurisdiction.