1. A mutual fund that buys stock in foreign companies to diversify its holdings without expecting to exercise any control over the companies engages in foreign:
a. direct investment
b. flight capital
c. portfolio investment
d. franchising
2. Licensing is when a firm:
a. buys products from another firm in another country
b. grants the use of intellectual property to another firm
c. purchases foreign financial assets for a purpose other than control
d. sells some products to another firm in another country
3. A firm that switches from FIFO to LIFO changes the way it:
a. moves its inventory
b. warehouses its inventory
c. values its inventory
d. counts its inventory