What Is an Advantage of Direct Investment in Another Country

question 16

Multiple Choice

What is an advantage of direct investment in another country?

• A) Less risk is involved.
• B) It is not expensive.
• C) There is more profit potential.
• D) The facility is less integrated in the foreign market.
• E) Synergy between business partners is achieved.

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Definitions:

RUPA

The Revised Uniform Partnership Act, which provides a legal framework for the operation of partnerships in the United States.

Intent

The state of mind with which an act is done, characterized by a decision to bring about a specific result, often a crucial aspect in both criminal and contract law.

Limited Liability

A legal status where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership.

Income Taxes

Taxes imposed by the government on the income earned by individuals and businesses over a fiscal period.