Which of the Following Statements About Small-Scale Entry Is True

question 15

Multiple Choice

Which of the following statements about small-scale entry is true?

• A) The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages.
• B) Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale.
• C) By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry.
• D) Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market.

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Definitions:

Statement Of Cash Flows

A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time.

Cash Receipts

The collection of money, including coins, notes, and electronic transactions, received by a business.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but not full control or ownership.