Establishing a Wholly Owned Subsidiary in a Foreign Country Can

question 61

Multiple Choice

Establishing a wholly owned subsidiary in a foreign country can be done:

• A) through a turnkey operation or through a licensing agreement
• B) through a joint venture of through acquiring an established firm to promote its products
• C) through setting up a new operation in a foreign country or through acquiring an established firm to promote its products
• D) through licensing agreements or through setting up a new operation in the foreign country
• E) through master franchising agreements

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Definitions:

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Redeemed

Redeemed refers to the action of exchanging a financial instrument, such as a bond or preferred stock, for cash or another form of value, often at its maturity or a predetermined price.

Bond

A promissory note issued by a business or a governmental unit.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.