Ch. 5 Structures of International Business Review

Unlimited liability means that

A method of international business with the lowest risk is

A MNC has a world-wide market view because it views the entire world as a potential customer.

Of the following methods for international business, the one with the highest risk is

Direct exporting is when a company actively seeks to sell goods and services in other countries

A common disadvantage of a sole proprietorship is

Using agents to arrange for buyers in other countries is known as___________________ exporting.

A sole proprietorship is the easiest type of business to start.

A ____ corporation is a town organized to provide services for citizens rather than a profit.

A separate foreign company owned by a parent company is called a

If a partner buys equipment without asking the other partner, that partner is only liable. 

Business organizations that are formed to provide services without regard to making a profit

One way to raise money to operate a corporation is to sell portions of ownership to the public.

Owners of a corporation are commonly called stockholders.

A corporation is considered a legal "person" that acts on behalf of the company’s owners.

A common advantage of acorporation is

The lowest-risk method of getting involved in IB is to form a joint venture in another country.

A joint venture exists when

Of the following statements, the one that does describe a multinational company is that

Ease of creation and availability of different talents are common advantages of a

Municipal corporations do not usually engage in international business activities.

What company has advertised since 1988 with the slogan, "We'll leave a light on for you"

Limited liability means that stockholders can lose their investment if the corporation fails.

Corporations share their profits with stockholders by paying ____________________.

Profit results when the money paid for _________ is subtracted from the money taken in forsales

Of the following statements, the one that does not describe a multinational company is that