In the Context of Entry Tactics Available for Different Entry

question 40

Multiple Choice

In the context of entry tactics available for different entry modes, which of the following statements is true of white-label goods?

• A) They can easily be branded and sold under a partner's brand name.
• B) They refer to a licensor's patented goods that can be used by a licensee.
• C) They can easily be exported to foreign nations without being subjected to import tariffs.
• D) They refer to goods that are donated by franchisees to nonprofit organizations.

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Definitions:

Contribution Margin Ratio

A financial metric that measures how much of a company's revenue is available to cover its variable costs and contribute to its fixed costs.

Margin of Safety Ratio

A financial ratio that measures the difference between actual sales and break-even sales, used to assess a company's financial risk.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.

Actual Sales

This refers to the actual revenue generated from the sale of products or services, as opposed to projected sales or forecasts.