Which of the Following Entry Modes Can Be Considered as Having

question 5

Multiple Choice

Which of the following entry modes can be considered as having the lowest risk and the lowest amount of ownership and control?

• A) Wholly owned subsidiary
• B) Strategic alliance
• C) Exporting
• D) Franchising

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay the loan.

Inadequate

Lacking the quality or quantity required; insufficient for a purpose.

Assets

Economic resources owned or controlled by an individual or entity, expected to produce future benefits.