For a Hotel Company Whose Competitive Advantage Is Based on High

question 63

Multiple Choice

For a hotel company whose competitive advantage is based on high brand name recognition, which of the following ways of serving an overseas market makes the most sense?

• A) Exporting
• B) Licensing
• C) Franchising
• D) Entering into a joint venture with a foreign company
• E) Setting up a wholly owned subsidiary

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Definitions:

Cash Dividend

A payment made by a company to its shareholders, usually in cash, out of its profits or reserves.

Bond Payable

A long-term debt instrument issued by corporations and governments, promising to pay the bondholder a specified sum of money at future dates.

Indirect Method

A method often used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, also known as net earnings or net profit.