A Mining Company Is Analyzing a Prospective Site in Africa

question 63

Multiple Choice

A mining company is analyzing a prospective site in Africa. The national government is military but stable and friendly to foreign firms. Outside of towns however, there are major tensions among ethnic groups, high crime rates and significant kidnap risks for company personnel. The firm should pay particular attention to:

• A) Political risks
• B) Economic risks
• C) Security risks
• D) Operational risks

---

Definitions:

Share Market

A venue where stocks, bonds, and other securities are bought and sold between investors.

Employee Share Ownership

Programs that allow employees to own shares or a stake in the company they work for, aiming to align interests and boost motivation.

Profit-sharing Plans

Compensation schemes where employees receive additional benefits based on the company's profits, designed to align employees' interests with the financial success of the organization.

Shares

Ownership units in a company that represent a portion of the equity and entitle the holder to a share of the corporation's profits, often through dividends.