Whereby a Company Builds a Subsidiary from Scratch in a Foreign

question 37

Short Answer

Whereby a company builds a subsidiary from scratch in a foreign country, is referred to as a(n) _____, and is the most risky type of direct investment.

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Definitions:

Operating Segments

Components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.

Financial Reporting

The process of disclosing financial results and related information to stakeholders and the public, typically through formal documents.

Reportable Segments

Portions of a business that have distinct financial information available and are regularly reviewed by the company's management for decision-making purposes.

GAAP

Generally Accepted Accounting Principles, which are a set of rules encompassing the details, complexities, and legalities of business and corporate accounting.