Which of the Following Is a Potential Negative Factor for Foreign

question 32

Multiple Choice

Which of the following is a potential negative factor for foreign investment in China?

• A) China's population is aging and is likely to continue to do so for many years.
• B) China drastically restricts the goods it allows U.S. companies to export to China.
• C) China's standard of living has dropped over the past 30 years.
• D) China has imported fewer goods from the United States each year for the past decade.
• E) Chinese consumers are not interested in purchasing products from the United States.

---

Definitions:

Par Value

A nominal or face value assigned to a share of stock by the company's charter, which has little bearing on its market value.

Shares

Units of ownership in a company, representing a portion of the corporation's capital, often traded on stock exchanges.

Treasury Shares

Shares that were once part of the float and outstanding shares but were subsequently bought back by the issuing company, reducing the amount of stock on the open market.

Common Stock

Equity ownership in a corporation, with privileges that may include voting rights and a share in profits through dividends and capital appreciation.