One of the Important Hindrances to Savers Placing Their Funds

question 74

Multiple Choice

One of the important hindrances to savers placing their funds in foreign financial assets is

• A)the costliness of gathering information about foreign financial assets.
• B)the higher tax rates levied by the U.S. government on earnings from such assets.
• C)the reluctance of many European countries to allow foreign investment in their financial assets.
• D)the difficulty in reading company reports written in a foreign language.

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Definitions:

Break-Even Sales

The level of sales at which total revenues equal total costs, resulting in neither profit nor loss for the business.

Common Fixed Expenses

Common fixed expenses are costs that do not fluctuate with the volume of production or sales, shared by different segments or products of a business, like rent and insurance.

Operating Period

The span of time during which a company or a project is expected to operate or carry out its activities.

Break-Even Sales

The amount of revenue required to cover all fixed and variable costs, resulting in a net income of zero.