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:

Mouth

The oral cavity; can also refer to the opening to organs.

Alcohol

A chemical substance, commonly found in beverages such as beer, wine, and spirits, that can alter consciousness and is known for its potential for abuse and dependency.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.

Powders

Fine, dry particles produced by the grinding, crushing, or disintegration of a solid substance.