Indirect Exporting Is

question 81

Multiple Choice

Indirect exporting is:

• A)when a firm sells its domestically produced goods in a foreign country through an intermediary.
• B)when a foreign country and a local firm invest together to create a local business.
• C)contracting with a foreign firm to manufacture products according to stated specifications.
• D)offering the right to a trademark, patent, trade secret, or similarly valued item of intellectual property in return for a royalty or fee.

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Definitions:

Capital Stock

The total amount of shares that a corporation is authorized to issue to shareholders, representing the primary source of equity financing for the company.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that were missed in the past before any dividends are paid to common stock shareholders.

Capital Stock

The total amount of shares that a corporation is authorized to issue as stated in its articles of incorporation.

Dividend

A portion of a company's earnings distributed to its shareholders.