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18 April, 04:31

An American fast-food chain that moves into Canada by buying an existing Canadian fast-food chain represents

what type of entry mode?

a. Equity partially-owned subsidiary

b. Nonequity contractual agreement

c. Equity WOS

d. Nonequity export

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Answers (1)
  1. 18 April, 04:34
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    Answer: Option C

    Explanation: In simple words, an equity wholly owned subsidiary refers to the company which has a separate legal entity but the ownership rights of which, in form of common stock, remains in the hand of some other company that is called its parent company.

    A company holding more than 50 percent stock go another will be termed as parent company but the operations of subsidiary and parent company will be different.

    In the given case, American company purchased an existing Canadian chain means they purchased majority shares in the company leading to equity wholly owned subsidiary.
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Home » Business » An American fast-food chain that moves into Canada by buying an existing Canadian fast-food chain represents what type of entry mode? a. Equity partially-owned subsidiary b. Nonequity contractual agreement c. Equity WOS d. Nonequity export
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