A Major Disadvantage of Operating a Wholly Owned Subsidiary Is

question 28

Multiple Choice

A major disadvantage of operating a wholly owned subsidiary is that

• A)a loss of control over technology is likely to occur.
• B)a wholly owned subsidiary offers too much flexibility over operations.
• C)high costs and risk are associated with this type of operation.
• D)overseas consumers are often resentful of foreigners.
• E)host countries can impose higher tariffs on the firm.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory, a standardized psychometric test of adult personality and psychopathology used to diagnose mental disorders.

Purchase Choice

The decision made by consumers regarding which products or services to buy.

Brands of Jam

Various companies or labels under which jam, a sweet spread made from fruit and sugar, is marketed and sold.

Ignorance

The lack of knowledge, understanding, or information about a particular subject or fact.