Establishing a Wholly Owned Subsidiary in a Foreign Country Can

question 17

Multiple Choice

Establishing a wholly owned subsidiary in a foreign country can be done:

• A)through a turnkey operation or through a licensing agreement.
• B)through franchising or through licensing.
• C)by setting up a new operation or by acquiring an established firm.
• D)by establishing a firm that is jointly owned by two or more independent firms.

---

Definitions:

Manufacturing Overhead Control

A way of monitoring and managing the costs associated with the indirect elements of production, such as utilities, maintenance, and factory supplies.

Overhead Costs

All costs on the income statement except for direct labor, direct materials, and direct expenses, covering expenses like rent, utilities, and insurance.

Volume of Units

The total number of individual units produced or sold by a business in a specified period.

General & Administrative Expenses

Operating expenses that are not directly tied to the production of goods or services, including salaries of non-sales personnel, rent, and office supplies.