Question

Mary Kay, Inc. entered China in 1995 through its subsidiary, Mary Kay Cosmetics Company Ltd., which is headquartered in Shanghai, China. This is an example of what?

1) Joint venture
2) Franchise
3) Wholly-owned subsidiary
4) Licensing agreement

Answer 1

Mary Kay, Inc.'s entry into China is an example of a wholly-owned subsidiary.

Step-by-step explanation:

Mary Kay, Inc.'s entry into China through its subsidiary, Mary Kay Cosmetics Company Ltd., which is headquartered in Shanghai, China, is an example of a wholly-owned subsidiary.

A wholly-owned subsidiary is a company that is entirely owned and controlled by another company, known as the parent company. In this case, Mary Kay, Inc. owns and controls Mary Kay Cosmetics Company Ltd. in China.