Ownership Review

Direct exporting occurs when a company seeks to sell good and services in other countries

• Yes

• No

A corporation can raise money by selling stock

• yes

• no

If I have limited liability in a corporation and it fails I can lose my investment

• yes

• no

A government-owned corporation is a cooperative

• yes

• no

Lowest-risk method to get involved in international business is a joint venture

• yes

• no

If a manufacturer produces products from a company located in another country this is contract manufacturing

• Yes

• no

Disadvantage of a sole proprietorship

• double taxation

• limited life of business

• difficult to start

• owners shares profit

easy to create and having different talents

• sole proprietorship

• corporation

• cooperative

• partnership

lowest risk for international business

• indirect exporting

• franchising

• joint venture

• foreign direct investment

a musician allows their music to be played in a movie in another country

• management contracting

• wholly-owned subsidiary

• licensing

• direct importing