Which of the Following Is a Disadvantage of Wholly Owned

question 26

Multiple Choice

Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets?

• A)Lack of control over quality
• B)High costs and risks
• C)Problems with local marketing agents
• D)Inability to engage in global strategic coordination
• E)Lack of control over technology

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Definitions:

Conversion Cost Per Equivalent Unit

This is the cost incurred during the manufacture of a product that includes both direct labor and manufacturing overhead costs, divided by the number of equivalent units produced.

Work In Process-Assembly

Items in a manufacturing process that have been partially completed but are not yet finished goods.

First-In, First-Out

An inventory valuation method where goods first added to inventory are the first ones to be sold.

Equivalent Units

A conceptual unit used in cost accounting to represent the amount of work done on partially completed goods, allowing for the calculation of unit costs.