If Your Canadian-Based Firm Opens and Operates a New Watch

question 76

Multiple Choice

If your Canadian-based firm opens and operates a new watch factory in Panama, what type of investment is your firm engaging in?

• A)foreign portfolio investment
• B)foreign financial investment
• C)foreign direct investment
• D)foreign capital investment

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Definitions:

Indorses

Signs or writes one's name on the back of (a document) to make it transferable or to add details, also referred to as endorsing.

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a future time.

Good Faith

A principle that implies honesty and sincerity of intention in the fulfillment of one's duties or negotiation.

Promissory Note

A financial instrument indicating a written promise by one party to pay a definite sum of money to another party under agreed terms.