You Live in the U

question 45

Multiple Choice

You live in the U.S.and want to invest in a Chinese company,which will be referred to as "CC," because you believe its stock is uniquely positioned to be unusually profitable over the next five years.However,you do not have direct access to the Chinese financial markets.You may be able to indirectly invest in CC by purchasing which one of the following?

• A)Swap
• B)ADR
• C)Gilt
• D)Bulldog bond
• E)Samurai bond

Comprehend the significance of visuals in business plans and how they support the text.

Analyze the sequence of entrepreneurial activities and the placement of business plans within it.

Realize the impact of market analysis on business planning and strategy.

Appreciate the importance of realistic projections and identifying potential business plan errors, such as the exaggerated hockey stick forecast.

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or reinvested in the business instead of being distributed to shareholders as dividends.

Weighted-average Shares

A calculation used in accounting and finance to determine the average number of shares outstanding in a company, adjusted for stock splits and other changes.

Price-earnings Ratio

A financial metric comparing a company's market price per share to its earnings per share, indicating the value given by the market for each dollar of earnings.

Price-earnings Ratio

The price-earnings ratio, or P/E ratio, measures a company's current share price relative to its per-share earnings, indicating the market's valuation of a company's growth potential.