International Business · Class 11 · CBSE · Commerce Business Studies
A company wants complete ownership and control over its foreign operations and is prepared to commit substantial capital while accepting high busines…
Practice question from International Business (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
hard · MCQ · Q-30D6C5
A company wants complete ownership and control over its foreign operations and is prepared to commit substantial capital while accepting high business risk. Which mode of international business best suits this objective?
- A.Exporting
- B.Licensing
- C.Wholly owned subsidiaryCorrect answer
- D.Franchising
Solution
A wholly owned subsidiary gives the parent company complete ownership and control over the foreign enterprise. However, it requires substantial investment and exposes the parent company to greater financial and business risks.
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