In the context of global business approaches, which of the following statements is true of non-equity business forms?
A) They present more financial risk to companies than equity business forms.
B) They demand little assistance from the headquarters HR staff.
C) They include joint ventures, mergers and acquisitions, and direct investment.
D) They offer businesses a high-cost entry into new, global markets.

Question

Quizplus · Accepted Answer

Non-equity business forms, such as licensing and franchising, do not involve any ownership or financial investment by the parent company. Therefore, they require less assistance from the headquarters HR staff as compared to equity business forms such as joint ventures, mergers and acquisitions, and direct investment. Option A, C, and D are incorrect as they either present less financial risk, include different examples of non-equity business, or offer a low-cost entry into new, global markets.

In the Context of Global Business Approaches, Which of the Following