Candy Wants to Start an Internet Business Which Will Operate

question 16

Multiple Choice

Candy wants to start an Internet business which will operate domestically as well as internationally. She is told by the Chinese government that certain items on her site are objectionable and illegal, and that if she wants to do business in China, she must remove the objectionable material. Which of the following is true?

• A) Candy is within her rights and should stand her ground. She is a U.S. citizen, and so long as she obeys U.S. laws, she can do business in China.
• B) Candy is within her rights only if she petitioned her state senator and obtained his or her permission to proceed.
• C) If Candy wants to do business in China, she must abide by Chinese law.
• D) By international law, there is a set fee of $10,000 that Candy can pay if she wants to obey only U.S. law. If she pays that amount, she can continue in China without any modification.
• E) By international law, there is a set fee of $5,000 that Candy can pay if she wants to obey only U.S. law. If she pays that amount, she can continue in China without any modification.

Describe the funding structure for health care services in Canada.

Explain the legal requirements to successfully sue for negligence.

Understanding of the "reasonable person" test in liability cases.

Identify the function and importance of surety bonds in contractual agreements.

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Definitions:

Semistrong Efficient

This term refers to a form of market efficiency that assumes all publicly available information is already reflected in stock prices, including historical and fundamental data.

Strong-Form Efficient

A state of market efficiency where all information, public and private, is accounted for in stock prices.

SML

Security Market Line, a graphical representation that shows the expected return of a security or portfolio as a function of its beta (systematic risk).

Expected Total Return

The sum of income and capital appreciation that an investment is anticipated to earn over a specific period.