Which of the Following Characterizes Country Risk

question 53

Multiple Choice

Which of the following characterizes country risk?

• A) The political and legal systems of adjacent nations greatly impact the country risk of nations that host foreign firms.
• B) Country risk will change only after the creation of laws and regulations that affect foreign firms.
• C) A nation's country risk level remains fairly constant until the election and installation of a new political leader.
• D) Country risk is always present, but its nature and intensity vary over time and from country to country.

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Definitions:

Common-Sized Income Statement

An income statement in which each line item is expressed as a percentage of sales, facilitating the comparison across different periods or companies.

Net Income

The final profit of a company calculated by deducting all expenses and taxes from its revenue.

Common-Sized Financial Statement

A financial statement in which each line item is expressed as a percentage of a certain base figure, facilitating comparison across periods or companies.

Percentage

A fraction or ratio expressed as a part of 100.