Which of the Following BEST Explains How a Firm Reduces

question 79

Multiple Choice

Which of the following BEST explains how a firm reduces risk by operating internationally?

• A)taking advantage of business-cycle differences among countries
• B)buying competitive risk insurance unavailable domestically
• C)preventing competitors from operating in the countries it has entered
• D)operating in less competitive environments than those at home

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Definitions:

Future Values

The value of an asset or amount of money at a specified date in the future that is equivalent in value to a specified sum today.

Present Values

The process of determining the present worth of an amount or series of cash flows that will be received or paid in the future, using a specific discount rate.

Annuity Payment

A fixed sum of money paid to someone each period, typically for the rest of their life or for a fixed number of years.

Insurance Proceeds

The payment received by an insured party from an insurance company in the event of a claim.