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