Rick Russell Owns a Small Company That Specializes in Waste

question 53

Essay

Rick Russell owns a small company that specializes in waste cleanup on the high seas.He believes that his company can grow dramatically if he can find foreign partners and investors.According to the events and trends cited in the text as affecting global business today,which of these trends would have the most impact on Mr.Russell's business? Explain your rationale.

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Definitions:

Debentures

Debentures are a type of long-term debt instrument that are not secured by physical assets or collateral but backed only by the general creditworthiness and reputation of the issuer.

Effective Interest Method

A method of amortizing the discount or premium on bonds payable that results in a constant rate of interest over the life of the bond.

Semiannual

Occurring twice a year; a term often used in the context of payments, reporting periods, or interest calculations.

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, unrelated to market value.