Which of the following is an advantage of direct investment?
A) Direct investment involves fewer risks than joint ownership.
B) Direct investment ensures that a firm is shielded from market changes.
C) Direct investment allows a firm to keep full control over the investment.
D) Direct investment involves minimal financial or time expenditures.
E) Direct investment protects the firm from currency devaluation.

Question

Quizplus · Accepted Answer

Direct investment allows a firm to keep full control over the investment. This means that the firm has the ability to make decisions about the investment without having to consult with other parties, as would be necessary in joint ownership. This can be an advantage for firms that want to maintain control over their investments and have more autonomy in their decision-making processes. The other options listed are not advantages of direct investment.

Which of the Following Is an Advantage of Direct Investment