A Flag of Convenience Is ________

question 32

Multiple Choice

A flag of convenience is ________.

• A)the declaration that a product is made in a country that has easier legal access to a given foreign market
• B)a designation for products originating within a particular trading group
• C)the registration of a ship by a shipping company in a country that charges low taxes
• D)the indication that a shipping organization can sail in international waters

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Definitions:

Dirty Price

The price of a bond that includes accrued interest, in contrast to the clean price which excludes it.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.

Protective Covenant

Clauses in a bond or loan agreement that limit certain actions of the issuer to protect creditors' interests.

Financial Statements

Records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.