ABN Corporation, Headquartered in New York, Was Enjoying Unparalleled Success

question 73

Multiple Choice

ABN Corporation, headquartered in New York, was enjoying unparalleled success in its Hamburg, Germany, branch office. At the annual corporate management meeting in New York, Gunter Klaus, Germany branch manager, modestly cited several reasons for his success. He said, "Our decision to hire Anna Bundt into our Hamburg office turned out to be a wise one. Anna is a native of Vienna, Austria. As a result of her knowledge of business in her home country, she has opened doors to many new clients in Austria. This has resulted in a business volume beyond what we had envisioned." In this instance, Anna is a(n)

• A) expatriate.
• B) host-country national.
• C) third-country national.
• D) inpatriate.
• E) parent-country national.

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Definitions:

Straight-Line Method

A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Yearly Interest Expense

The total amount of interest payment a company owes over the course of a year on its borrowings.

Total Interest Expense

The total cost incurred by an entity for borrowed funds over a specific period.