Jupiter Systems Is a High-Tech Firm Looking to Set Up

question 93

Multiple Choice

Jupiter Systems is a high-tech firm looking to set up operations in a foreign country to profit from its technological know-how which is its core competency.Which of the following modes of entry would be most favorable to the firm if it wants to keep a tight control over its technology?

• A) Wholly owned subsidiary
• B) Joint venture
• C) Franchising
• D) Licensing
• E) Turnkey project

---

Definitions:

Gross Profit

The financial metric resulting from subtracting the cost of goods sold from sales revenue, indicating the efficiency of a company in managing its production and sales.

Operating Expenses

Costs associated with the daily operations of a business, excluding cost of goods sold.

Sales

The total amount of a company's revenues earned from selling goods or services.