A Major Disadvantage of American Depository Receipts (ADRs)is That Investors

question 48

True/False

A major disadvantage of American Depository Receipts (ADRs)is that investors who buy them must pay currency-conversion fees.

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Definitions:

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Marginal Cost

The cost added by producing one additional unit of a product or service.

Output

The aggregate output of products or services generated by a corporation, sector, or economic system.

Price-Taker Market

A market in which sellers have no ability to influence the price of the goods or services they sell; price is determined by supply and demand.