A Wholly Owned Subsidiary Is Appropriate When the Firm Wants

question 23

Multiple Choice

A wholly owned subsidiary is appropriate when the firm wants

• A) to share the cost and risk of developing a foreign market.
• B) 100 percent of the profits generated in a foreign market.
• C) a plant that is ready to operate.
• D) to test a market.

---

Definitions:

Legal Positivists

A school of thought in jurisprudence that holds the belief that the validity of a law is not related to its morality but is contingent upon its sources and recognition by the state.

Validly Enacted Laws

Laws that have been properly passed and approved by the legislative process, and are therefore legally binding.

Just Law

A legal principle or legislation that is regarded as fair, morally right, and in accordance with ethical standards.

Equitable Remedy

A corrective action ordered by a court that involves doing or refraining from doing something, as opposed to paying damages, to address a legal wrong or a breach of contract.