The Entry Strategy That Requires the Highest Levels of Investment

question 12

Multiple Choice

The entry strategy that requires the highest levels of investment and exposes firms to significant risks is:

• A)direct investment.
• B)joint venture.
• C)franchising.
• D)licensing.
• E)strategic alliance.

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Definitions:

Inventory Management

The process of ordering, storing, tracking, and controlling inventory to ensure the right quantity of stock is available when needed.

Sales Forecast

An estimate of sales for a future period, often used for planning and managing business operations.

Master Budget

A comprehensive financial planning document that consolidates all individual budgets within an organization, projecting its overall financial activities.

Firm Forecast

A prediction or estimation about future business conditions that is relatively certain and stable.