In a direct foreign investment arrangement, which statement is true of the direct investors?

A. They do not have a controlling interest in the firm.
B. They possess the lowest potential risk.
C. They have the highest potential reward.
D. They have a small minority interest in the foreign firm.


Answer: C

Business

You might also like to view...

Which of the following modes of entry into a foreign market involves the maximum commitment and risk?

A) franchising B) direct investment C) joint ventures D) licensing E) direct exporting

Business

The work sheet for a merchandising business would not include

a. Cost of Goods Sold; b. a net income or net loss amount; c. a closing entry; d. Purchases; e. an adjustment to Income Summary.

Business

Which of the following is not a benefit of using wireless technology?

A. Mobility B. Security C. Rapid deployment D. Flexibility and Scalability

Business

The presence of a SPLMS effectively guarantees program integrity

Indicate whether the statement is true or false

Business