When a Finn's Managers Are Concerned About the Possibility of Losing

question 68

Multiple Choice

When a finn's managers are concerned about the possibility of losing control of proprietary know-how, which entry mode should the firm avoid?

• A)Acquisition
• B)Internal new venture
• C)Joint venture
• D)Divestiture
• E)Merger

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Definitions:

Performance Level

A measurement of the efficiency and effectiveness of a process or activity.

Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, often used to assess workforce efficiency or cost control.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to complete a task, multiplied by the standard labor rate.

Standard Direct Labour Hours

The estimated time considered necessary to produce one unit of a product under normal conditions.