Which of the Following Is a Reason a Company Might

question 9

Multiple Choice

Which of the following is a reason a company might cross-list itself on a foreign stock exchange?

• A) It wants to hedge against currency fluctuations.
• B) It is less expensive than listing itself solely on a domestic exchange.
• C) It wants to obtain acquisition currency for acquiring a foreign company.
• D) It is required for accomplishing foreign direct investment.

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Definitions:

Rules Of Thumb

Simple, practical guidelines or principles, often based on experience rather than precise knowledge, used to make decisions or solve problems.

Decision-Making

The cognitive process of selecting a course of action among several alternatives to achieve a desired objective.

Spotlight Question

A probing question designed to uncover deep insights, typically used to focus attention on specific issues during discussions or interviews.

Implied Warranty

A legal guarantee that a product will meet a minimum level of quality and functionality, assumed in a sale even if not expressly stated.