How Can a Wholly Owned Subsidiary Be Established in a Foreign

question 4

Multiple Choice

How can a wholly owned subsidiary be established in a foreign market?

• A)through a turnkey operation with a local partner
• B)through franchising
• C)by acquiring an established firm in the host nation
• D)by exporting
• E)through a licensing agreement

---

Definitions:

Sales Allowance

A reduction in the selling price of goods, granted by the seller to the customer for partial refund due to minor defects or issues in the sold goods.

Discount Period

The time frame during which a payment can be made at a reduced rate, often related to invoice payments.

Credit Terms

The conditions under which credit will be extended to a customer, including the repayment period and any interest charges.

Merchandise

Goods that a company buys for resale to customers, encompassing a wide range of items sold by retailers.