In a _____,A Mode of Entry into Foreign Markets,a Firm

question 103

Multiple Choice

In a _____,a mode of entry into foreign markets,a firm agrees to set up an operating plant for a foreign client and hand over the plant when it is fully operational.

• A) franchising agreement
• B) turnkey project
• C) licensing agreement
• D) wholly owned subsidiary
• E) joint venture

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Definitions:

Subordinated Debt

Loans or securities that rank below other loans or securities with regard to claims on assets or earnings, typically entailing higher risk and higher interest rates.

Yield

The income return on an investment, such as the interest or dividends received, expressed usually as a percentage of the investment's cost or current market value.

Restrictive Covenants

Clauses in contracts that impose limitations or conditions on the actions of parties, commonly found in lending agreements to protect the lender.

Indenture

A formal legal agreement, contract, or document, especially one relating to a loan or bond issue.