_____ Involves Producing Goods at Home and Then Shipping Them

question 59

Multiple Choice

_____ involves producing goods at home and then shipping them to the receiving country for sale.

• A)Outsourcing
• B)Licensing
• C)Franchising
• D)Exporting

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Definitions:

Inventories

Goods or materials that a business holds for the purpose of sale or production.

Subsidiary Entity

A company that is controlled by another company, known as the parent company, through ownership of more than half of its voting stock or through control of its operations.

Parent Entity

A corporation that owns enough voting stock in another corporation to control management and operations by influencing or electing its board of directors.

Non-depreciable Asset

An asset that is not subject to depreciation due to its indefinite useful life or that it maintains its value over time, such as land.