Common and Civil Law (Scenario)

question 99

Multiple Choice

Common and Civil Law (Scenario)
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long term.
-Which of the following questions would be more important for Zane legal experts to consider before recommending Country A or Country B?

• A) Have other corporations based in these two countries been profitable?
• B) What is the prevalence of industrial crime in these two countries?
• C) How would a contractual dispute with a local vendor be resolved?
• D) Would local environmental organizations target Zane for its manufacturing practices?

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Definitions:

Financial Manager

A professional responsible for managing a company's financial health by developing strategies, planning, and overseeing investment activities.

Cash Collections

The process of gathering and managing incoming cash payments from customers or clients.

Sales

The activities involved in selling goods or services to customers for revenue.