Of the Five Strategies for Entering New Markets, Direct Investment

question 5

Multiple Choice

Of the five strategies for entering new markets, direct investment creates the

• A)least investment cost.
• B)greatest potential risk.
• C)most franchisee control.
• D)best opportunity for strong strategic alliances.
• E)greatest coordination of efforts of global and local partners.

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Definitions:

Equivalent Units

A measure used in cost accounting to express the amount of materials, labor, or overhead a partially completed unit represents in terms of fully completed units.

Operations

Activities and tasks involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Process Costing

An accounting method used to evaluate the cost of a production process by assigning costs to sections of the manufacturing process.

Job Order System

A method of assigning costs to specific production batches or jobs and is used in manufacturing industries where customization or unique products are produced.