Question

multiple choice question
adieu enterprises, based in toronto, decides to expand into the south american market. to do so, it establishes a separate operation in brazil that is owned and controlled in its entirety by adieu. which form of expanding internationally does this represent?

wholly - owned subsidiary
joint venture
licensing
global sourcing

Explanation:

A wholly - owned subsidiary is a separate business entity that is entirely owned and controlled by another company. In this case, Adeu Enterprises owns and controls the operation in Brazil entirely. A joint venture involves two or more companies sharing ownership and control. Licensing is about allowing another party to use intellectual property for a fee. Global sourcing is about obtaining goods and services from around the world.

Answer:

A. Wholly owned subsidiary