Wholly Owned Subsidiaries

Q.

The most common route for investments by MNCs in countries around the world is to__________________.

1. set up new factories

2. buy existing local companies

3. form partnerships with local companies

4. both (a) and (b)

Q.

Which of the following is the correct definition of green field venture?

1. None of the above

2. Greenfield Venture is a form of market entry strategy with establishment of a new wholly owned subsidiary in either a foreign country or one's own country by constructing its facilities from start.

3. Greenfield Venture is a form of market entry strategy with establishment of a new wholly owned subsidiary in a foreign country by constructing its facilities from start.

4. Greenfield Venture is a form of market entry strategy with establishment of a new wholly owned subsidiary in one's own country by constructing its facilities from start.

Q.

Centralised control in MNCs implies control exercised by ___.

1. Branches

2. Headquarters

3. Parliament

4. Subsidiaries

Q.

Wholly Owned Subsidiaries is a form of foreign direct investment.

1. True

2. False

Q.

Which of the following statement(s) is/are true about Wholly-owned subsidiaries?

1. There is no risk-sharing in the case of wholly owned subsidiaries.

2. The parent firm needs to invest 100 percent of the equity capital in the foreign firm. Hence, it is not suitable for small or medium-sized firms.

1. Both statements are true

2. Only statement 1 is true

3. Only statement 2 is true

4. None of the statements is true

Q. venture is a form of market entry strategy with the establishment of a new wholly owned subsidiary in a foreign country.

1. Greenfield
2. Whitefield
3. Redfield
4. Blackfield

Q.

Outsourcing involves contracting out. Do you agree?

Q.

Who Is The Owner Of the Idea Company?

Q. Wholly Owned Subsidiaries is a form of investment.

1. foreign indirect
2. foreign direct
3. foreign security
4. foreign labour

Q.

Incorporated in 1949 which country is Sanyo headquartered in?

Q.

Which of the follwoing statement(s) about green field venture is/are correct?

1. Amazon India is a green field venture.

2. Greenfield Venture is a form of market entry strategy with establishment of a new wholly owned subsidiary in a foreign country by constructing its facilities from start.

1. Only statement 1 is correct

2. Both statements are correct

3. None of the statements is correct

4. Only statement 2 is correct

Q.

Which one of the following modes of entry permits greatest degree of control over overseas opeartions?

1. Licensing/operations

2. Wholly owned subsidiary

3. Contract manufacturing

4. Joint venture

Q.

One of the ways of establishing a wholly owned subsidiary is acquiring an established firm in the foreign country and using that firm to manufacture or promote its products. In March 2008, Tata Motors acquired Jaguar Land Rover, making it a wholly owned subsidiary of Tata.

1. True

2. False

Q.

What is centralised control in case of MNC?

Q.

Which of the following would include Foreign Direct Investment in India? Select the correct answer.

1. Subsidiaries of companies in India

2. Majority foreign equity holding in Indian companies

3. Companies exclusively financed by foreign companies

4. Portfolio investment

1. 1, 2, 3 and 4
2. 2 and 4 only
3. 1 and 3 only
4. 1, 2 and 3 only

Q. Under wholly owned subsidiary, companies do not enjoy the full control over their subsidiaries overseas.

1. True
2. False

Q. The characteristics of a Multi National Enterprise (MNE) include which of the following?

1. It owns its subsidiaries in other countries
2. It may operates in another countries
3. These are established due to difference in the rate of return on capital between the two countries
4. Both A and B

Q. What is the difference between Internal Control and Internal Check?

Q. The company which has been set up by the Parent company in another country is known as ___

Q. Select the proper option from the options given below and rewrite the sentences.

In ________ the parent company makes 100% investment in its equity capital and thus acquires full control over the foreign company.

(a) Contract Manufacturing
(b) Wholly Owned Subsidiaries
(c) Foreign Companies