Which of the Following Statements About the International Finance Corporation

question 34

Multiple Choice

Which of the following statements about the International Finance Corporation (IFC) is false?

• A) The decision to assist a venture depends on both the profitability of the project and the potential benefit to the host country's economy.
• B) The IFC assumes no managerial responsibility and exercises no voting rights.
• C) The IFC may either buy equity shares or provide long-term loans.
• D) All of these options are true.

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Definitions:

De Facto Corporation

Latin for “corporation in fact”; a corporation that has not substantially met the requirements of the state incorporation statutes.

Corporation By Estoppel

A defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability.

De Jure Corporation

Latin for “lawful corporation”; a corporation that has met the mandatory statutory provisions and thus received its certificate of incorporation.

Alien Corporation

A business that is incorporated in a foreign country.