In the Context of the Modes of Entering a Foreign

question 45

Multiple Choice

In the context of the modes of entering a foreign market, which of the following is a difference between nonequity modes and equity modes?

• A) Nonequity modes carry less risk than equity modes.
• B) Nonequity modes bring more rewards than equity modes.
• C) Unlike equity modes, nonequity modes allow a firm to get close to customers.
• D) Unlike equity modes, nonequity modes solely include joint ventures.

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Definitions:

Medical Practices

Medical practices refer to the professional businesses or establishments operated by one or more physicians or medical professionals to provide healthcare services to patients.

Firms

Businesses or companies engaged in commercial, industrial, or professional activities.

Individual Assets

Assets that are identifiable and separate, such as machinery, buildings, or patents, and can be owned and controlled by an entity.

Partnership Liquidates

When a partnership liquidates, it involves the process of dissolving the business, settling debts, distributing remaining assets among partners, and ceasing operations.