Which of the Following Terms Is Used to Describe Local

question 203

Multiple Choice

Which of the following terms is used to describe local job creation that results from foreign direct investment?

• A) restructuring
• B) franchising
• C) offshoring
• D) insourcing
• E) horizontal integration

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Definitions:

Noncontrolling Interest

The share of ownership in a subsidiary that cannot be directly or indirectly linked to the parent company.

Fair Value

The revenue expected from an asset sale or the cost to offload a liability in a transaction with market players on the date it is appraised.

Residual Income

Income that remains after all operating expenses and costs of capital have been deducted.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions and distributions to noncontrolling interests.