Which of the Following Is True of Establishing Greenfield Venture

question 51

Multiple Choice

Which of the following is true of establishing greenfield venture in a foreign country?

• A) Greenfield investments are less risky than acquiring an existing company in a foreign market.
• B) An inherent degree of uncertainty is associated with a greenfield venture because of future revenue and profit prospects.
• C) Greenfield investments virtually eliminate the possibility of a more aggressive global competitor entering the market via acquisitions.
• D) Greenfield investments are quick to establish.

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Definitions:

Units

In a business context, units refer to a measure of quantity, such as items produced, sold, or in inventory, used for operational and financial analyses.

Budgeted Units

Budgeted units refer to the estimated quantity of product a company plans to produce or sell in a certain period.

Production

The process of creating, manufacturing, or assembling goods and services.

January

The first month of the year in the Gregorian calendar.