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.
-The CEO has just determined that Sports Stuff plans to retain complete control over its operations in Europe.To achieve that objective,Herb would most likely recommend that the firm establish a ________.
A)joint venture
B)turnkey project
C)wholly owned subsidiary
D)franchise

Question

Quizplus · Accepted Answer

To retain complete control over its operations in Europe, the best option for Sports Stuff, Inc. would be to establish a wholly owned subsidiary, allowing the company to have full ownership and control over its European operations. A joint venture involves sharing ownership and control with another company, a turnkey project involves transferring technology and expertise to a local company, and a franchise involves sharing ownership, control, and business knowledge with a local franchisee. These options do not provide the same level of control as a wholly owned subsidiary.

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