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Commerce · Q102

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 102

Q102

Examine the following statements and choose the correct answer: Statement (I): Companies with Low cash reserves normally prefer Licensing mode rather than Foreign Direct Investment. Statement (II): Cash rich firms normally prefer Foreign Direct Investment.

A.
Both (I) and (II) are correct
Answer
B.
Both (I) and (II) are wrong
C.
(I) is correct but (II) is wrong
D.
(I) is not correct but (II) is correct

Answer: Option A

Solution

Answer: Option A
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