Social Networking Site Friendster' S Entry into Asia Is an Example

question 18

True/False

Social networking site Friendster' s entry into Asia is an example of opportunistic internationalization.

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Definitions:

Administrative Costs

Expenses related to the general administration of a business, such as salaries of senior executives, legal and accounting services.

Unlevered Firm

A business that does not have any debt in its capital structure, relying solely on equity for funding.

Cost of Capital

The rate of return a company must pay to its securities holders, serving as the opportunity cost of using capital resources for an investment.

Annual Coupon

The yearly interest payment made to bondholders, typically expressed as a percentage of the face value.