As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.
-Shana is considering forming a partnership with a Dutch corporation that will create an entirely new company called Half Moon.What kind of enterprise will Half Moon be?
A)a multidomestic corporation
B)a foreign subsidiary
C)a joint venture
D)a domestic subsidiary

Question

Quizplus · Accepted Answer

Half Moon will be a joint venture because it involves forming a new company between Shana's company and a Dutch corporation, with shared ownership and control. A multidomestic corporation involves having multiple, independent subsidiaries operating in different countries with significant autonomy, whereas a foreign subsidiary would involve a parent company owning a separate, fully-controlled entity abroad. A domestic subsidiary would refer to a company established within the same country as the parent company.

As a Business Expansion Director, Shana's Goal Is to Scout