The Purchase of Less Than 10 Percent of the Shares

question 204

Multiple Choice

The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a

• A) portfolio investment.
• B) foreign direct investment.
• C) foreign indirect investment.
• D) negligible investment.

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Definitions:

Operating Experience

Accumulated knowledge and skills from directly managing or running business operations.

Intellectual Honesty

Commitment to truth and objectivity in one’s reasoning and arguments, avoiding bias or misrepresentation of facts.

Owning Resources

Refers to having legal possession or control over resources such as property, intellectual property, or financial assets.

Professional Experience

The accumulation of knowledge, skills, and expertise that individuals gain through performing tasks in their respective fields or careers.