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:

Investment Capital

Funds invested in a business for the purpose of furthering its operations and generating income or profit.

Profit Opportunities

Situations or conditions that allow for the chance to generate earnings above the norm.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.

Industry Supply Curve

A graphical representation showing the total quantity of a good that producers within an industry are willing and able to supply at different price levels.