The Purchase of Physical Assets or a Significant Amount of Ownership

question 2

Multiple Choice

The purchase of physical assets or a significant amount of ownership of a company in another country to gain a measure of management control is called ________.

• A)portfolio investment
• B)foreign direct investment
• C)horizontal integration
• D)vertical integration

---

Definitions:

Uniform Commercial Code

A set of laws that provide legal standards and regulations for commercial transactions and business dealings.

Common Law

A body of unwritten laws based on legal precedents established by the courts, as opposed to statutory laws enacted by legislative bodies.

Assignment Law

Legal principles covering the transfer of rights, duties, or properties from one party to another.

Impliedly Warrants

Indicates a scenario where a warranty is not explicitly stated but is inferred from actions, circumstances, or the nature of a transaction.