Which of the following is used by entrepreneurs to acquire experience in an international market before
making a major commitment.
(A) Minority interest
(B) Joint venture
(C) Merger
(D) Majority interest
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Answer:
majority interest
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Minority Interests are used by entrepreneurs to acquire experience in an international market before making a major commitment.
Explanation:
- A minority interest can offer a company with a supply of uncooked substances or a quite captive marketplace for its products.
- Japanese agencies were common customers of the minority fairness role in direct overseas investment.
- Entrepreneurs have used minority positions to advantage a foothold or accumulate enjoyment in a marketplace earlier than making the main commitment.
- When the minority shareholder has something of robust value, the capacity to persuade the decision-making manner is regularly some distance in extra of the quantity of ownership.
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