Discuss Two Reasons Why a Nation Might NOT Consider a Firm's

question 84

Essay

Discuss two reasons why a nation might NOT consider a firm's high debt ratio a risky approach to international business.

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Definitions:

Limited Liability

A legal structure where a company's owners are protected from personal responsibility for its debts or liabilities, beyond their investment in the company.

Life Cycle

Describes the series of stages that an entity or product goes through from inception through growth, maturity, and eventual decline or termination.

Dissolution

The process of legally terminating and liquidating a company's existence.

Distributed Assets

Allocation of assets from an entity to its beneficiaries or creditors following dissolution or liquidation.