A Restaurant Chain Based in Hong Kong Plans to Open

Multiple Choice

A restaurant chain based in Hong Kong plans to open a series of restaurants in the United States to gain access to low-cost capital for its expansion efforts. Which of the following, if true, would most strongly support the claim that establishing U.S. operations would NOT be the best choice for providing the chain access to the low-cost capital it seeks?

A) Relocation to the U.S. would involve substantial cross-cultural risk.
B) U.S. funding sources are more expensive than capital sources in many other promising locations.
C) The company has attracted significant interest from American venture capitalists.
D) U.S. funding offered in the hospitality sector tends to be more expensive than funding for health care firms.