What Is Foreign Direct Investment

question 58

Multiple Choice

What is foreign direct investment?

• A)A loan from the International Monetary Fund made directly to a country's central bank
• B)A loan intended to bypass corrupt local officials by going straight to a targeted industry
• C)An investment in which a company maintains control of its assets in another country
• D)Investments in other countries in which investors have no role in managing the assets

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Definitions:

Operating Activities

Activities related to the primary operations of a company, including cash flows from sales, supply purchases, and payroll.

Equipment Purchases

Transactions involving the acquisition of physical assets for use in the production or supply of goods and services, typically considered as capital expenditure.

Cash

Money in the form of bills or coins, available for transactions or on hand.

Equipment

Tangible assets used in operations, such as machinery or office hardware, which are not intended for sale in the regular course of business.