If a Firm Is Trying to Enter a Market Where

question 109

Multiple Choice

If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose

• A) a franchise.
• B) a greenfield investment.
• C) a joint venture.
• D) an acquisition.

---

Definitions:

Accounts Payable

Liabilities of a business that are due to creditors within a short period, usually less than a year, for goods, services, or supplies purchased on credit.

Subsidiary Ledger

A ledger that provides detailed information about accounts in the general ledger, typically used for accounts receivable, accounts payable, etc.

Creditors

Individuals or entities to whom money is owed by the business or individual for goods or services that have been delivered or used but not yet paid for.

Special Journal

A specialized accounting journal designed to record a specific type of transaction consistently, such as sales or purchases.