In Service Firms Where the Risk of Losing Control Over

question 7

Multiple Choice

In service firms where the risk of losing control over the management skills or technological know-how is not much of a concern,and where the firms' valuable asset is their brand name,_____ would be a suitable mode of entry.

• A)exporting
• B)franchising
• C)licensing
• D)turnkey contracts

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Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Money Market Securities

Short-term debt instruments, commonly including treasury bills, commercial paper, and certificates of deposit, known for their liquidity and low-risk profile.

Lockbox System

A banking service offered to businesses for collecting payments from clients, using a dedicated post office box to accelerate the process of gathering checks.

Treasury Bills

Short-term government securities with maturity periods typically less than a year, considered very safe investments.