How Would a Company Decide Which Foreign Languages Will Be

question 29

Multiple Choice

How would a company decide which foreign languages will be used to present its financial statements?

• A)Determine which language is closest to the local language so that translation is less costly.
• B)Choose the language based on which countries provide the greatest potential source of funds.
• C)Follow the language requirements of its local accounting regulatory agency.
• D)Select the language of the most populous country in its region of the world.

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Definitions:

Tax-Exempt Institutional

Refers to entities or investment products that do not have to pay federal or state income taxes.

Low Dividend Policy

A corporate practice of distributing minimal portions of the company's earnings to its shareholders as dividends.

High Dividends

Refers to stocks or securities that offer a significant dividend payout in relation to their market price, often viewed as an indicator of a company's potential for long-term growth.

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, out of its profits or reserves.