A Fully Owned Subsidiary Is Most Likely a High-Risk Entry

question 24

Multiple Choice

A fully owned subsidiary is most likely a high-risk entry strategy because of ________.

• A) expropriation threats
• B) unreliable distributors
• C) infrastructure weaknesses
• D) quality control issues

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Definitions:

Conflict of Interest

A situation where an individual's personal interests could interfere with their professional duties or responsibilities, possibly leading to biased decisions.

Ethical Challenges

Situations in which individuals or organizations must make decisions that involve conflicting moral principles or values.

Audit

Audit refers to the systematic examination and verification of a company's financial records, typically conducted by an independent party, to ensure accuracy and compliance with financial regulations and standards.

Customer's Right

The legal entitlements and protections afforded to customers when purchasing goods and services.