A Corporation That Can Source Its Products in One Country,sell

question 24

Multiple Choice

A corporation that can source its products in one country,sell them in another country,and raise the funds in a third country

• A)is a multinational corporation.
• B)is a domestic firm if all of the shareholders are from the same country.
• C)enjoys a built-in hedge against exchange rate risk.
• D)enjoys a built-in hedge against political risk.

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Definitions:

Payroll Checks

Payroll checks are written documents issued by an employer to pay an employee for services rendered.

Special Bank Account

A bank account designated for a specific purpose or to handle particular types of transactions, separate from general accounts.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date.

Note Payable

A written promise to pay a certain amount of money, typically including interest, by a certain date; a form of credit or loan.