A Company Wants to Build a New Factory from Scratch

question 111

Multiple Choice

A company wants to build a new factory from scratch overseas. This is an example of:

• A) franchising.
• B) greenfield venture.
• C) joint venture.
• D) exporting.
• E) licensing.

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Definitions:

Fringe Benefits

Additional compensation given to employees beyond their base wage or salary, such as health insurance, paid vacation, or retirement plans.

Take-Home Pay

Net income after all deductions like taxes, social security, and retirement contributions are subtracted from an individual's gross salary.

Nominal Wage

The wage paid to workers measured in current money terms, without adjusting for inflation, reflecting the actual amount received.

Price Level

The overall average price of the complete range of goods and services available in the economy.