An Organization Would Like to Expand Overseas

question 31

Multiple Choice

An organization would like to expand overseas.Its managers have considered pursing the expansion through a joint venture,but they are concerned that using a joint venture would limit the amount of profits they can make and also limit their control of the venture.Which of the following global expansion tactics should you suggest to these managers?

• A)Exporting
• B)Transnational symbiotic venturing
• C)A greenfield venture
• D)Franchising
• E)Licensing

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Definitions:

Operating Income

Income generated from normal business operations, calculated by subtracting operating expenses from the gross profit.

Cash Account

An account that represents the amount of liquid assets or cash available to an individual or company.

Operating Expenses

Costs associated with the day-to-day functions of a business that are not directly tied to production.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, also known as shareholders' equity.