When a Company's Strategy Is ________, the Firm Makes Arrangements

question 24

Multiple Choice

When a company's strategy is ________, the firm makes arrangements for a foreign manufacturer to produce the product. The domestic company's label and/or trademark are attached to the completed product.

• A) franchising
• B) contract manufacturing
• C) import sourcing
• D) export trading

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Definitions:

Cumulative Voting

A voting system that allows shareholders to allocate all of their votes to one candidate, enhancing minority shareholders' chances of influencing board election outcomes.

Board of Directors

A group of individuals elected by shareholders to oversee the major decisions and policies of a corporation.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, entitling the owner to a proportion of the company's assets and profits.

Preemptive Rights

Rights given to existing shareholders to purchase additional shares in a company during a new issue before the shares are offered to the public, allowing shareholders to maintain their proportional ownership.