Which of the Following Would Be a Canadian Foreign Portfolio

question 191

Multiple Choice

Which of the following would be a Canadian foreign portfolio investment?

• A) CAE, a Canadian company, builds a new factory near Rome, Italy.
• B) A Canadian citizen buys shares of stock in companies located in Latvia.
• C) A Dutch hotel chain opens a new hotel in Canada.
• D) A citizen of Singapore buys a bond issued by a Canadian corporation.

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume, such as raw materials and direct labor.

Units Sold

A measure of the quantity of inventory items that a company has sold to its customers within a particular period.

Prime Cost

The combined cost of direct materials and direct labor involved in manufacturing a product.

Period Costs

Expenses directly tied to a specific time period, such as rent, utilities, and administrative salaries, and not directly to the production process.