Scenario: Sports Stuff,Inc.
Herb Graham is vice president of Sports Stuff,a business that develops,manufactures,and markets sports memorabilia.The company is looking to expand its operations into the European market.Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe,the company will achieve success there.
-If Sports Stuff hires a company to design,construct,and test a production facility on its behalf,the company would be participating in which of the following?
A)Joint venture
B)Turnkey project
C)Wholly owned subsidiary
D)Franchise

Question

Quizplus · Accepted Answer

Sports Stuff would be participating in a turnkey project, as they are hiring a company to design, construct, and test a production facility on their behalf. A joint venture involves two or more parties joining to form a new entity, a wholly owned subsidiary involves a company owning 100% of a subsidiary company, and a franchise involves one party licensing the use of their brand and business model to another party.

Scenario: Sports Stuff,Inc. Herb Graham Is Vice President of Sports Stuff,a Business That