Which of the Following Is an Example of Foreign Direct

question 36

Multiple Choice

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

• A)U.S.auto entrepreneur Elon Musk buys stock in Alibaba Group Holding Limited of Hangzhou,China.
• B)Chinese Shenzen Airlines company buys a small U.S.midwest airline company,Air Chicago.
• C)The U.S.company Walmart buys a warehouse in Shanghai.
• D)The bank of China purchases U.S.Treasury bonds.
• E)A U.S.foreign exchange speculator buys $200,000 worth of the Chinese currency the yuan.

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Definitions:

Asset Sale

The sale of a company's assets, as opposed to the company itself or its shares, typically to raise cash or dispose of unwanted resources.

AASB 116

Australian Accounting Standards Board 116 pertains to Property, Plant, and Equipment, outlining the accounting treatment for most types of property, plant, and equipment.

Depreciation Methods

These are systematic ways of allocating the cost of a tangible asset over its useful life. Examples include straight-line and declining balance methods.

Useful Lives

The period over which an asset is expected to be usable by an organization, reflecting its anticipated period of economic benefit.