A Coca-Cola bottling plant in Bolivia is wholly owned by a local businessperson. What kind of venture is this plant likely to be?

A) a franchise
B) a licensed plant
C) a foreign subsidiary
D) a joint venture

Answer: B
Explanation: The plant cannot be a joint venture or foreign subsidiary because it is owned by the local businessperson. The plant is not likely to be a franchise because it is marketing a single product–Coca-Cola–rather than an entire operation. That leaves the correct response, "a licensed plant." The company has licensed the right to produce Coca-Cola to the local businessperson who has complete control of the plant.