When an Organization Directly Owns Part of or an Entire

question 8

Multiple Choice

When an organization directly owns part of or an entire business in a foreign market,it is called __________.

• A)franchising
• B)exporting
• C)licensing
• D)contract manufacturing
• E)foreign direct investment

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Definitions:

Financing Activities

Actions that result in changes in the size and composition of the equity capital or borrowings of the company, as reported in the cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Long-Term Liabilities

Refers to debts or obligations that are due in over a year's time, including loans, bonds payable, or lease obligations.

Cash Dividends

A distribution of profits by a corporation to its shareholders in the form of cash.