Which of the Following Is an Example of a Transfer

question 5

Multiple Choice

Which of the following is an example of a transfer risk:

• A) Risk of involuntary transfer of the firm's ownership from foreign shareholders to the government of the host country through expropriation.
• B) A possibility that the host country government will impose the restriction on the percentage of the foreign ownership in which case new equity must be issued and the current foreign shareholders will effectively lose control over the firm although they will be compensated for their shares of control over the firm.
• C) Risk that the firm's shares will not be allowed to be listed on the host country stock exchange, which reduces the ability to freely transfer the ownership.
• D) Restriction on the cross-border flow of capital.

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Definitions:

Posttraumatic Stress Disorder

A psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.

Agoraphobia

A disorder characterized by an extreme or irrational fear of entering open or crowded places, of leaving one's own home, or of being in places from which escape is difficult.

Rapid Heart Rate

An unusually fast heartbeat, which can be a symptom of stress, anxiety, or physical health issues.

Obsessive-compulsive Disorder

A mental health disorder characterized by repetitive, unwanted thoughts (obsessions) and behaviors (compulsions).