For Many Small and Medium Enterprises, the Dominant Form of Foreign

question 5

Multiple Choice

For many small and medium enterprises, the dominant form of foreign market entry is:

• A) contract manufacturing.
• B) licensing.
• C) franchising.
• D) direct exportings.
• E) indirect exporting.

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Definitions:

Net Method

An accounting method that records the net of discounts or expenses directly on invoices at the time of purchase or sale.

Selling Price

The price at which a product or service is sold to customers, reflecting the cost plus any added profit margin.

Acquisition Differential

This refers to the difference between the purchase price of a company and the fair value of its identifiable net assets.

Straight Line Amortization

A method of gradually writing off the initial cost of an asset over its useful life in equal installments.