As Per the U

question 90

Multiple Choice

As per the U.S.law and OECD convention,which of the following will most likely to be considered as a grease payment?

• A) Gold Fire Inc. paid a fine of $2500 for violating the labor laws in a foreign country.
• B) Gold Fire Inc. made a small payment of $20 to speed up some paper work related to tax returns in a less developed country.
• C) The proprietor of Gold Fire Inc. made payments to the Mafia as a protection against violent retribution.
• D) Gold Fire Inc. gave gift vouchers to all its product wholesalers in order to promote the product.
• E) Gold Fire. Inc made an unrecorded payment to one of its accountants in return for window dressing the company's accounts.

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Definitions:

Dollar-Weighted Return

A method of calculating an investment's return that considers the timing and amount of capital inflows and outflows.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Sharpe Measure

A measure for calculating the performance of an investment compared to a risk-free asset, after adjusting for its risk, often used to understand the risk-adjusted return.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market.