The most risky method(s) by which firms conduct international business is (are):
A) Franchising.
B) The acquisitions of existing operations.
C) The establishment of new subsidiaries.
D) All of the above
E) B and C only

Question

Quizplus · Accepted Answer

Acquisitions of existing operations and the establishment of new subsidiaries involve the highest level of risk because they require a significant investment of capital and resources. Franchising, on the other hand, involves a lower level of risk because the franchisor provides support and guidance to the franchisee.

The Most Risky Method(s) by Which Firms Conduct International Business