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18 January, 05:31

Jupiter Systems is a high-tech firm looking to set up operations in a foreign country. The firm's core competency is in technological know-how. Which of the following modes of entry would be most favorable to the firm if it wants to keep a tight control over its technology? A. Wholly owned subsidiary B. Joint venture C. Franchising D. Licensing E. Turnkey project

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  1. 18 January, 05:33
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    Answer: Wholly owned subsidiary

    Explanation: An entity whose entire shares are held by its parent company are called wholly owned subsidiary companies. The management of such companies are different from the parent companies, but the parent companies still have a very strong indirect influence on such entities.

    In the given case, Jupiter system wants to hold on to its unique technology, therefore, they should go for subsidiary structure as they will have complete control in such system.

    Hence from the above we can conclude that the correct option is A.
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