What Is a Cultural Hurdle in the Path of China

question 47

Multiple Choice

What is a cultural hurdle in the path of China becoming a vast market in the long run?

• A) caste system
• B) xenophobia
• C) excessive focus on human rights
• D) excessive bureaucracy
• E) excessive spending

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Definitions:

Component Cost of Debt

The effective rate that a company pays on its current debt, incorporating tax effects.

Preferred Shares

Preferred Shares are a type of stock that grant holders preferential treatment over common stockholders in terms of dividends and assets during liquidation, but usually do not carry voting rights.

Rate of Return

The increase or decrease in the value of an investment, shown as a percentage of the original amount invested, over a given timeframe.

Floatation Costs

Flotation costs are the expenses incurred by a company in issuing new securities, including fees and commissions paid to underwriters, legal fees, and registration fees.