Which of the Following Is NOT an Example of an Economic

question 129

Multiple Choice

Which of the following is NOT an example of an economic challenge faced by international managers?

• A) Government ownership of all property
• B) Unstable government
• C) Absence of power plants
• D) Lack of educational facilities
• E) Few natural resources

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies by recognizing their share of the earnings.

Cost Method

An accounting method used to record investments at their original purchase cost.

Consolidated Net Income

Consolidated net income refers to the total earnings of a parent company and its subsidiaries after taxes and expenses, adjusted for minority interests.

Consolidated Retained Earnings

The cumulative amount of net income earned by a parent company and its subsidiaries, less any dividends paid, as presented in consolidated financial statements.