Which of the Following Is an Example of Foreign Direct

question 206

Multiple Choice

Which of the following is an example of foreign direct investment?

• A)You purchase a plane ticket to China on American Airlines.
• B)American Airlines builds a hub in China.
• C)You buy a plane that was made in China.
• D)A stock broker from China sells you a Chinese government savings bond.

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Definitions:

Comparative Balance Sheet

Financial statement showing a company's assets, liabilities, and equity at two or more points in time, allowing for comparative analysis.

Accumulated Depreciation

The total depreciation amount that has been charged against a fixed asset since it was put into use.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Cash Dividend

A payment made by a company to its shareholders, usually in the form of cash, as a share of the profits.