Which of the Following Would You Consider to Be a True

question 37

Multiple Choice

Which of the following would you consider to be a true statement?

• A)Creating a foreign subsidiary usually occurs at an early stage of an organisation's global evolution.
• B)A joint venture is a specific type of strategic alliance.
• C)Strategic alliances and foreign subsidiaries are essentially the same.
• D)Licensing is primarily used by service organisations.
• E)'Global sourcing' is another term for 'importing'.

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Definitions:

Consideration

In a contractual agreement, it is the value or promise that each party agrees to exchange.

Promissory Estoppel

A legal principle that enables a party to recover on a promise made when they have reasonably relied on that promise to their detriment, even if a formal contract does not exist.

Illusory Contract

An agreement that fails to bind at least one of the parties due to the lack of a definite promise or because the terms allow for withdrawal without consequence.

Adequacy Of Consideration

The principle that the value exchanged in a contract must be fair and reasonable to both parties involved.