If two companies established a jointly owned entity for the purpose of building computers to export to Asia,that would be an example of a ___________________ form of foreign market entry.
A) wholly owned subsidiary
B) joint venture
C) turnkey project
D) franchise
E) merger

Question

Quizplus · Accepted Answer

A joint venture is when two or more companies collaborate and establish a new entity for a specific purpose, such as entering a foreign market. In this case, the joint venture is to build computers for export to Asia. The other options do not fit the scenario presented. A wholly owned subsidiary is when a company owns 100% of a foreign entity. A turnkey project is when a company builds and transfers a completed facility to a foreign entity. A franchise is a business model where a company grants the right to use its brand and business system to a franchisee. A merger is when two companies combine to form a new entity.

If Two Companies Established a Jointly Owned Entity for the Purpose