If a Country Wants to Improve Its Attractiveness as a Place

question 117

Multiple Choice

If a country wants to improve its attractiveness as a place for doing business and as an investment site, it should

• A) oppose the rule of law.
• B) ensure that the economic activity is heavily regulated by the state.
• C) move toward a market-based system.
• D) extensively restrict property rights.
• E) avoid enforcing intellectual property laws.

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Definitions:

Account Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Net Credit Sales

The total revenue from sales made on credit, minus returns and allowances, during a specific period.

Times Interest Earned Ratio

A financial ratio that measures a company’s ability to meet its debt obligations based on its current earnings.

Income Before Taxes

The earnings of a business before income tax expense has been deducted.