Which of the Following Statements About Foreign Affiliates Is (Are)

question 77

Multiple Choice

Which of the following statements about foreign affiliates is (are) true?

• A) in general, foreign affiliates are less profitable than domestic businesses
• B) foreign affiliates usually raise the portfolio risk of the parent company
• C) foreign affiliates may have a significant positive impact on the host company's economic growth, employment, trade, and balance of payments
• D) all of the other answers are true

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Definitions:

Zero-Interest Financing

A financing method where no interest is charged over the loan period, making it an attractive option for borrowers.

Monthly Payment

A regular payment made each month, usually in the context of loan repayments or leasing arrangements.

Compounded Annually

A calculation of interest where the interest earned over a period is added to the principal, and the total becomes the principal for the next computation period on a yearly basis.

Withdrawal

The act of removing funds from a bank account, investment, or retirement savings.