Which of the Following Can Be Encountered When Investing in Foreign

question 42

Multiple Choice

Which of the following can be encountered when investing in foreign markets?
I. foreign taxation of dividends
II. different accounting standards for financial disclosure
III. restrictions on types of investments
IV. illiquid markets

• A) II and III only
• B) II and IV only
• C) I, II and IV only
• D) I, II, III and IV

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Definitions:

Cash Deficiency

A situation where the cash available is not sufficient to cover the expenses or liabilities; often results in the need for additional financing or budget adjustments.

Production Budget

A plan that outlines the number of units that must be produced within a period to meet the expected sales and inventory levels.

Units Produced

Units produced quantify the number of complete units manufactured or produced during a specific time frame in a production process.

Budget

An accounting device used to plan and control resources of operational departments and divisions.