The Seizure of Foreign Assets by a Government with Payment

question 27

Multiple Choice

The seizure of foreign assets by a government with payment of compensation to the owners is referred to as:

• A)expropriation.
• B)confiscation.
• C)transfer risk.
• D)domestication.

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Definitions:

Operating Cycle

The duration it takes for a company to buy inventory, sell products, and collect cash from sales, showing the efficiency of its operations.

Interest-Bearing Note

A debt instrument that pays interest to the holder, usually at a fixed rate, until the principal is repaid.

Face Value

The nominal or original value printed on a financial instrument, such as a bond or stock certificate.

Notes Payable

Notes payable are written agreements where a borrower agrees to pay back the principal amount along with interest to a lender at a future date.