A Cellphone Provider Establishes Production Operations in Foreign Countries to Sell

question 27

Multiple Choice

A cellphone provider establishes production operations in foreign countries to sell its phones in those regions. The operations perform as separate entities without any local direct involvement. These production operations are considered

• A)joint ventures.
• B)acquisitions.
• C)wholly owned foreign subsidiaries.
• D)strategic alliances.
• E)franchises.

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Definitions:

Dishonors

Refers to the refusal by a bank to pay the amount stipulated in a check or draft when presented.

Drawn

Refers to the process of extracting or taking something from a particular source, such as money from an account.

Liable

Legally responsible or obligated, often in the context of paying damages or facing other legal consequences.

Preprinted Promissory Note

A legally binding document that acknowledges debt and promises repayment, which comes in a standardized form.