Which of the following is the primary advantage of a wholly owned subsidiary as a foreign market entry strategy?
A) Provides a firm total control over its operations
B) Easier to raise capital to implement than other foreign market entry strategies
C) Gaining an appreciation of local customs and market preferences
D) Low transportation costs
E) The ability to give employees foreign market experience
Question 2
Which of the following statements is not true regarding the day-to-day challenges of growing a firm?
A) As a firm grows, it requires a decreasing amount of cash to service its customers.
B) If firm growth comes at the expense of a competitor's market share, price competition can set in.
C) Most businesses, regardless of their industry, need capital from time to time to invest in growth-enabling projects.
D) Although most businesses are started fairly inexpensively, the need for capital is typically the most prevalent in the early growth and continuous stages of the organizational life cycle.
E) One of the most difficult challenges that businesses encounter as they grow is maintaining high levels of quality and customer service.
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