One of the Problems with Finding New Fossil Fuel Deposits

question 4

Multiple Choice

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

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

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within the year or within the operating cycle of the business, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle.

Cash Flows

The aggregate sum of funds moving in and out of a company, particularly influencing its ability to cover short-term obligations.

Indirect Method

A technique used in cash flow statements to adjust net income for changes in non-cash items to calculate net cash from operating activities.