Which of the following is a disadvantage of establishing a wholly owned subsidiary?
a) Firms will face difficulties in building a certain organizational culture in greenfield ventures.
b) Firms will typically lose control over any technological competence.
c) A firm engaging in this strategy will have little control over operations in the foreign country.
d) Establishing a wholly owned subsidiary is generally the most costly method.
Ans: d) Establishing a wholly owned subsidiary is generally the most costly method.
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Which of the following is true of the Dodd-Frank legislation?
A) Federal Deposit Insurance Corporation-insured institutions are required to keep their interests in hedge funds and private equity funds. B) Investment banks have to set aside reserves to cover all forms of expenditure. C) Originators of mortgage securities must hold 5 percent of the credit risk, thus retaining an interest in the performance of the securities. D) Banks will be allowed to trade in a proprietary manner but cannot continue to buy or sell from their own accounts to hedge against other investments.
A woman testified in court that a celebrity sexually assaulted her. In fact, she said this only to extort money from the celebrity. The celebrity is considering suing her for defamation. Which of the following is TRUE?
A) Since the testimony was false the woman would have no defence. B) The defence of qualified privilege would apply C) The defence of fair comment would apply because the celebrity is a public figure.. D) The defence of absolute privilege would apply E) The defence of innocent dissemination would apply