Which of the Following Pairs of Alternatives Closely Resemble Each

question 9

Multiple Choice

Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses?

• A) Direct investment/franchising
• B) Wholly owned foreign affiliate/countertrade
• C) Exporting/licensing
• D) Franchising/licensing
• E) All of these

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Definitions:

Outstanding Stock

Shares of a corporation that have been issued and are currently held by investors, including public shareholders and the company's officers and insiders.

Parent Company

A corporation that owns a controlling share of the stock in another company, making the latter a subsidiary.

Fair Value Method

An accounting approach that measures and reports assets and liabilities on the basis of their estimated or actual fair market price.

Carrying Value

The book value of assets and liabilities on a company's balance sheet, excluding market value fluctuations.