Yum! Brands,the Parent Company of KFC,has Pursued an Aggressive Growth

question 333

Multiple Choice

Yum! Brands,the parent company of KFC,has pursued an aggressive growth strategy in China.There are now than 3,700 restaurants in 650 Chinese cities,and KFC has a 40% market share of the entire fast-food industry there.Yum! Brands China owns and directly manages about 90% of its Chinese stores,so it appears that the company prefers __________ in this market.

• A)licensing
• B)local assembly
• C)a joint venture
• D)direct investment
• E)local manufacturing

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Definitions:

Allocatively Efficient

An allocation status of resources where enhancing the welfare of one party means diminishing that of another.

Productive Inefficiency

A situation where resources are not utilized in the best possible way, leading to wasted potential output or higher costs than necessary.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal revenue equals marginal cost.

Minimum Level

The Minimum Level refers to the least amount, extent, or degree that is acceptable or achievable in a specific context.