The Entry Strategy That Requires the Highest Levels of Investment

question 12

Multiple Choice

The entry strategy that requires the highest levels of investment and exposes firms to significant risks is:

• A)direct investment.
• B)joint venture.
• C)franchising.
• D)licensing.
• E)strategic alliance.

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Definitions:

Control Mechanisms

Methods or systems implemented to guide the behavior of individuals or the performance of an organization towards its objectives.

Predetermined Limits

Boundaries or constraints set in advance to define the scope or extent of an action or project.

Chain of Command

A formal line of authority within an organization, which dictates the pathway for communication and decision-making.

Planned Configuration

A deliberate arrangement or design of components, systems, or structures, often in strategic planning or organizational development.