Which of the Following Statements Is the Best Example of Direct

question 91

Multiple Choice

Which of the following statements is the best example of direct investment?

• A)A U.S.company acquires more than 10 percent ownership of a foreign company.
• B)A foreign bank lends more than 10 percent of the funds needed by a business.
• C)A foreign bank lends less than 10 percent of the funds needed by a business.
• D)A U.S.company acquires less than 10 percent ownership of a foreign company.
• E)The Bank of America extends a loan to a foreign country.

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Definitions:

Lessor

The party in a lease agreement who owns the asset or property and grants its use to another party for a specific period, under certain conditions.

Original Buyer

The first individual or entity that purchases a product or service directly from the seller or manufacturer.

Benefit of the Bargain

A principle in contract law that allows a party harmed by a breach to recover the value of what they were promised in the contract.

Rescind

To cancel a contract.