Transnational Financing Occurs When a Firm Based in One Country

question 55

Multiple Choice

Transnational financing occurs when a firm based in one country enters another country to raise capital

• A) by borrowing from financial institutions.
• B) from the sale of stocks or bonds.
• C) by borrowing from banks.
• D) through exchange policies of governments.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current prices or valuations in an orderly transaction between market participants.

Equity Investment Portfolio

A collection of equity securities owned by an individual or institution, often diversified across various sectors.

Realized Gain

The profit made from the sale of an asset or investment when it is actually sold, not just on paper.

Available-for-sale Securities

Financial assets that are intended to be sold before they reach maturity or are needed to fund specific obligations.