A Firm Can Establish a Wholly Owned Subsidiary by

question 66

Multiple Choice

A firm can establish a wholly owned subsidiary by

• A) acquiring an existing company in the home country.
• B) keeping all of the activity offshore.
• C) licensing intellectual property.
• D) entering into a franchising agreement.

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Definitions:

Expectancy Theory

A motivation theory stating that an individual's motivation is based on the perceived likelihood that effort will lead to successful performance and the value of the resulting rewards.

Construct Change

The process of modifying theoretical constructs or variables to better fit empirical data or to evolve theories over time.

Evaluation Systems

Structured processes used to assess performance, effectiveness, or value of employees, projects, or programs within an organization.

Social Exchange

A theory that suggests human relationships are formed based on a subjective cost-benefit analysis and the comparison of alternatives.