A Clear Advantage of Wholly Owned Subsidiary as a Preferred

question 49

Multiple Choice

A clear advantage of wholly owned subsidiary as a preferred entry mode,particularly when a firm's competitive advantage is based on technological competence,will often be because it:

• A)reduces the risk of losing control over that competence.
• B)benefits from the host country's competitive conditions.
• C)increases control of the development costs and risks of working in a foreign market.
• D)maintains control over the capital necessary to get the overseas operation going.

Understand the rationale behind the selection of cash basis vs accrual basis accounting methods.

Interpret the purpose and structure of financial statements effectively.

Comprehend the functionality and necessity of an accounting system within a business environment.

Recognize the importance and method of ratio analysis and financial ratio categories in business decision-making.

---

Definitions:

Hydrologic Cycle

The hydrologic cycle describes the continuous movement of water on, above, and below the surface of the Earth, through processes such as evaporation, condensation, precipitation, and infiltration.

Groundwater

Water held underground in the soil or in pores and crevices in rock.

Fractures

Breaks in rock or mineral without the movement parallel to the surface of the break, often a result of stress exceeding the strength of the material.

Underground Lakes

Bodies of water that exist beneath the Earth's surface, often found in caves or formed by natural aquifers.