Which of the Following Is a Low-Risk Method of Entering

question 27

Multiple Choice

Which of the following is a low-risk method of entering a country's market without setting up operations in the country?

• A)Strategic alliance
• B)Management contracting
• C)Direct investment
• D)Contract manufacturing
• E)Franchising

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Definitions:

Audit Trail

A record that traces the detailed transactions relating to any operational, financial, or security process, allowing verification of the authenticity and integrity of transactions.

Direct Write-off Method

A method where uncollectable debts are charged to expense only when they are determined to be uncollectable.

Bad Debts

Refers to the amount of money owed to a company that is unlikely to be paid by the debtor, considered as a loss to the company.

Direct Write-off Method

An accounting practice where uncollectable debts are directly removed from the accounts receivable balance upon determination of their uncollectibility.