Which of the Following Is a Major Purpose of the International

question 42

Multiple Choice

Which of the following is a major purpose of the international capital market?

• A) to reduce entrepreneurial initiatives
• B) to increase the cost of borrowing
• C) to reduce risk for lenders
• D) to reduce the money supply for borrowers

---

Definitions:

Foreign Corporation

A company that is incorporated under the laws of a country different from the country of its primary operations.

Inventory

The total amount of goods and materials held by a business for the purpose of sale or production, including raw materials, work-in-process, and finished goods.

Consolidated Income Tax Return

A single income tax return filed by a parent company that includes all incomes, deductions, and credits of all members of a corporate group.

Intra-entity Transfers

Transactions of assets, services, or funds between divisions, departments, or units within the same entity.