One of the Problems with Finding New Fossil Fuel Deposits

question 20

Multiple Choice

One of the problems with finding new fossil fuel deposits in developing countries is that ___________.

• A)those countries tend to keep the resource for themselves, not sharing with other countries
• B)it is very expensive to transport the deposit elsewhere
• C)their governments seldom allow extraction of the deposit without imposing huge taxes to fund new social benefits for the country
• D)their governments seldom allow extraction of the deposit without meeting expensive environmental regulations
• E)multinational companies often move in to harvest the new deposit, and very little money or resource remains in the country

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Definitions:

Mid-Year Acquisition

The purchase of another business or significant assets during the middle of the fiscal year, affecting financial statements and operations.

Equity Method Investment

A financial recording method for investments in other firms where the investor holds considerable influence without exerting complete control.

Consolidated Income Statement

A financial statement that combines the income statements of a parent company and its subsidiaries, showing the overall performance.

Step Acquisition

The process of acquiring control of another company in stages over time, rather than all at once.