What Option Would Allow a Company to Make a Low-Risk

question 256

Multiple Choice

What option would allow a company to make a low-risk and capital-free entry into a foreign country?

• A)exporting
• B)joint venture
• C)direct investment
• D)franchising
• E)licensing

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Definitions:

Sales

The total amount of goods or services sold by a company within a specified period.

Internal Rate of Return

The discount rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Salvage Value

The projected value an asset will hold for resale when it's no longer useful.

Tax Rate

The share of one's or a company's revenue earmarked for taxation.