The Samsung Group Sells Several Different Product Lines Around the World

question 146

Multiple Choice

The Samsung Group sells several different product lines around the world through home appliance and electronics stores. Samsung appliances and electronics have been historically made in Korea, where the company is headquartered. Recently, Samsung has been investigating the possibility of buying land and building a production plant in Tennessee, in the United States. Which of the following is true about this scenario?

• A) Samsung is now operating as an exporter; however, if the plant is built in Tennessee, it will be operating as a strategic alliance.
• B) Samsung is now operating as a limited exporter; however, if the plant is built in Tennessee, it will be operating as a national marketer.
• C) Samsung is now operating as a limited exporter; however, if the plant is built in Tennessee, it will be operating as an international proprietor.
• D) Samsung is now operating as an exporter; however, if the plant is built in Tennessee, it will be operating as a multinational enterprise.
• E) Samsung is now operating as an exporter; however, if the plant is built in Tennessee, it will be operating as a global franchise.

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Definitions:

Market Value

The ongoing rate at which services or assets are being traded in the market.

Organization Costs

Costs incurred in the formation of a corporation.

Retained Earnings

Retained Earnings refer to the portion of net income left after dividends are paid out to shareholders, which is then reinvested in the company or used to pay down debt.

Intangible Asset

Assets that lack physical substance but are valuable because of the advantages or rights they provide to a business.