Which of the Following Statements Is True of the Environmental

question 17

Multiple Choice

Which of the following statements is true of the environmental forces that affect strategy formulation?

• A) Socialist economic systems normally levy light taxes on business profits.
• B) Countries that excessively spend on R&D tend to have lower levels of prosperity.
• C) Approval of the host government is almost always necessary for making direct investments.
• D) Free-market economies tend to levy high taxes on business profits.

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Definitions:

Periodic Instalment

Regular, scheduled payments made over time to repay a debt.

Unpaid Balance

The remaining amount of money that has not been paid on a loan or debt.

Contingent Liability

A potential financial obligation that depends on a future event that is not certain to happen.

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles and guidelines designed specifically for private companies in Canada.