A Wholly Owned Subsidiary Is Appropriate When

question 26

Multiple Choice

A wholly owned subsidiary is appropriate when:

• A) the firm wants to share the cost and risk of developing a foreign market.
• B) the firm wants 100 percent of the profits generated in a foreign market.
• C) the firm wants a plant that is ready to operate.
• D) the firm wants to test a market.

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Definitions:

Squamous

Scalelike, flat.

Epithelial Cells

Cells that line the surfaces of the body, including skin, blood vessels, organs, and cavities.

Basement Membrane

The basement membrane is a thin, dense layer of extracellular matrix that separates epithelial and endothelial cells from underlying connective tissue, providing support and anchorage.

Stomach

A muscular, hollow organ in the gastrointestinal tract that breaks down food using stomach acid and digestive enzymes, initiating the digestive process.