One Section of Jose's Company's Business Plan Involves Setting Up

question 70

Multiple Choice

One section of Jose's company's business plan involves setting up a foreign subsidiary.This arrangement involves ________.

• A)making products domestically and selling them abroad
• B)Jose's company giving the foreign subsidiary the right to use its brand name
• C)directly investing in a foreign country
• D)minimum global investment

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Definitions:

FOB Destination

A shipping term indicating that the seller bears the shipping costs and remains responsible for the goods until they are received and signed for by the purchaser.

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and the shipping costs as soon as the goods leave the seller's premises.

Consignment

An arrangement in which goods are left with a third party to sell, but the ownership remains with the supplier until the goods are sold.

Warranty Repairs

Warranty repairs are services provided to fix defects in products that are under warranty without additional charge to the consumer. These costs are often anticipated and accounted for by the manufacturer.