A Restaurant Chain Based in Hong Kong Plans to Open

question 25

Multiple Choice

A restaurant chain based in Hong Kong plans to open a series of restaurants in the United States to gain access to low-cost capital for its expansion efforts. Which of the following, if true, would most strongly support the claim that establishing U.S. operations would NOT be the best choice for providing the chain access to the low-cost capital it seeks?

• A) Relocation to the U.S. would involve substantial cross-cultural risk.
• B) U.S. funding sources are more expensive than capital sources in many other promising locations.
• C) The company has attracted significant interest from American venture capitalists.
• D) U.S. funding offered in the hospitality sector tends to be more expensive than funding for health care firms.

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Definitions:

Stimulus

An event or object that evokes a specific functional reaction in an organ or tissue.

Encoding

Turning information into a format that allows it to be saved in memory.

Visual Images

Mental representations created by the brain that can simulate or recreate sensory experiences without external stimuli.

Self-Referent Encoding

A cognitive process where individuals relate information to themselves, enhancing memory and recall.