Which of the Following Is an Example of a "Greenfield

question 47

Multiple Choice

Which of the following is an example of a "greenfield" investment?

• A) Nike contracts with a footwear company in China to make athletic shoes.
• B) A Chinese oil company buys a U.S. oil company.
• C) Toyota, a Japanese automaker, builds an assembly plant in Ohio.
• D) Daimler, a German automaker, merges with Chrysler, a U.S. automaker.

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Definitions:

Purchases Account

A general ledger account in which the purchases of goods intended for resale are recorded.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Overall Profitability

An assessment of a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.