International Business

Chapter 8: Business Ownership and Entrepreneurship

Chapter Summaries

• Three main types of business ownership are the sole proprietorship, the partnership, and the corporation.
• Most small businesses are sole proprietorships, owned by individual owners. Partnerships allow each partner to bring different skills to the business. Corporations have many owners and can attract large amounts of capital.
• A multinational corporation (MNC) is an organization that operates in more than one country.
• The selection of a particular mode of entry determines the approach a company will use to sell goods and services in another country. Modes of entry include indirect exporting, direct exporting, turnkey projects, licensing, franchising, joint ventures, strategic alliances, wholly owned subsidiaries, and foreign direct investments.
• Entrepreneurship is the process of starting up a new company or business.
• Global entrepreneurship is the process of selling new products, starting a new operating division, or starting up a new company in another country.