By Allowing a Company to Purchase Another Existing Firm in the Host

question 59

Multiple Choice

By allowing a company to purchase another existing firm in the host country, a(n) ______ permits a largely domestic business to gain an international presence very quickly.

• A) acquisition
• B) foreign licensing agreement
• C) joint venture
• D) countertrade

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Definitions:

Central Issues

Fundamental problems or primary topics of concern within a certain context.

Obtaining Investment

The process of securing funds from investors or financial institutions to start or grow a business.

Mezzanine Financing

A blend of equity and debt financing that gives the lender the right to convert to an equity interest in the company in case of default, typically used in the expansion of established companies.

Least Likely

The option or outcome with the lowest probability of occurring in a given set of circumstances.