Which of the Following Statements Refer to a Vertical FDI

question 70

Multiple Choice

Which of the following statements refer to a vertical FDI?

• A)An American company purchases a British soccer team.
• B)Ford Motor company establishes a plant in Canada.
• C)GM opens a plant in India.
• D)BMW opens a plant in Bilbao, Spain.

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Definitions:

Estimated Life

The expected duration or operational lifespan of an asset, determining how long it will be useful and depreciated in accounting records.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life, also considered in depreciation calculations.

Asset Improvements

Enhancements or upgrades made to a company's assets to increase their efficiency, productivity, or value.

Ordinary Maintenance

Ordinary maintenance involves the routine upkeep and repairs necessary to maintain assets in their current condition, without significantly enhancing their value or extending their life.