AMA PCM Exam - Topic 1 Question 38 Discussion

Actual exam question for AMA's PCM exam

Question #: 38
Topic #: 1

_____ requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries.

AFranchising

BDirect investment

CLicensing

DJoint venture

EStrategic alliance

Show Suggested Answer

Suggested Answer: B

by Sharee at May 08, 2022, 11:59 AM

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Haydee

7 months ago

Yup, 100% ownership is a key part of Direct investment!

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Torie

7 months ago

I thought Licensing was about ownership too?

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Edelmira

7 months ago

Wait, are you sure it's not a Joint venture?

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Melvin

7 months ago

Totally agree, that's how it works!

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Winfred

8 months ago

It's definitely Direct investment that requires full ownership.

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Lavera

8 months ago

I feel good about A - Small disbursements. The question is pretty clear that the employees are trying to keep the sizes of the disbursements low to avoid detection.

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Loren

8 months ago

I'm a bit unsure, but I think I need to set something to prevent CoA triggers. Was it No CoA? That sounds familiar.

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Carmela

8 months ago

Wait, I'm not sure. I'll need to double-check the options to make sure I don't miss anything.

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