Geographical Proximity Contributes To

question 78

Multiple Choice

Geographical proximity contributes to:

• A) knowledge of the country by its neighbors.
• B) lower freight costs.
• C) the likelihood of trade relationships.
• D) all of the above.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from face value and mature at par.

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free assets.

Retained Earnings

Profits that a company chooses to keep for reinvestment in its operations rather than distributing to shareholders as dividends.

Floatation Costs

Expenses incurred by a company during the process of issuing new securities, including legal, accounting, and underwriting fees.