The Purchase of More Than Ten Percent of the Shares

question 45

Multiple Choice

The purchase of more than ten percent of the shares of a foreign company is known as a(n)

• A) foreign direct investment.
• B) International Monetary Fund (IMF) investment.
• C) portfolio investment.
• D) World Bank investment.

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Definitions:

Ordinary Shares

Shares of a company providing voting rights and entitling the holder to dividends, representing ownership in a corporation.

Financial Liabilities

Obligations that require a company to pay money to another entity, including loans, bonds payable, and accounts payable.