Which One of the Following Forms of International Business Transactions

question 109

Multiple Choice

Which one of the following forms of international business transactions represent investments in a local operation that is completely owned and controlled by a foreign firm?

• A) a franchise
• B) a multinational corporation
• C) management contracts
• D) foreign subsidiaries
• E) joint ventures

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Definitions:

Dutch Auctions

A type of auction where the auctioneer starts with a high asking price which is lowered until some participant accepts the price.

Public Offerings

The process by which a company sells its shares to the public for the first time through a stock exchange.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including its debts.