Which of the Following Forms of Organizing a Global Business

question 5

Multiple Choice

Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market?

• A) licensing
• B) franchising
• C) global joint ventures
• D) wholly owned affiliates
• E) all of these

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Definitions:

Annual Dividend

The total amount of dividends a company pays out to its shareholders in one fiscal year.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Preferred Stock

A type of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.

Rate Of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.