Mary operates a famous company in Canada, selling down jackets. She is planning to establish branches in Hong Kong. A business consultant suggests her to operate these branches with different business owners but in a similar way to that of Mary's shops in Canada. Required: (a) Identify the form of ownership suggested by the business consultant. (b) Apart from more sources of capital, explain two reasons why Mary should establish the branches in the form of business ownership in (a) above instead of setting up branches in Hong Kong on her own. (c) Explain one measure in product development that Mary can ensure her firm is socially responsible.

Mary operates a famous company in Canada, selling down jackets. She is planning to establish branches in Hong Kong. A business consultant suggests her to operate these branches with different business owners but in a similar way to that of Mary's shops in Canada. Required: (a) Identify the form of ownership suggested by the business consultant. (b) Apart from more sources of capital, explain two reasons why Mary should establish the branches in the form of business ownership in (a) above instead of setting up branches in Hong Kong on her own. (c) Explain one measure in product development that Mary can ensure her firm is socially responsible.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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