With ________ Options, Serving Markets on Two Continents by Building

question 2

Multiple Choice

With ________ options, serving markets on two continents by building two plants instead of one gives a firm the option of switching production from one plant to the other as conditions dictate.

• A) waiting-to-invest
• B) growth
• C) flexibility
• D) learning

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Definitions:

Legal Entity

An organization with legal rights and obligations, such as a corporation, partnership, or sole proprietorship.

Nonstock Companies

Companies organized not to issue stock to the public, often structured to provide a service or benefit without profit motive.

Privately Held

A company ownership structure where its shares are not traded on public stock exchanges and are instead owned by a smaller number of private investors.

Foreign Corporation

A corporation that is incorporated under the laws of a country different from the country where it conducts its operations.