Examples of Transfer Risk Include

question 7

Multiple Choice

Examples of transfer risk include

• A)the unexpected imposition of capital controls,inbound or outbound,and withholding taxes on dividend and interest payments.
• B)unexpected changes in environmental policies,sourcing/local content requirements,minimum wage law,and restriction on access to local credit facilities.
• C)restrictions imposed on the maximum ownership share by foreigners,mandatory transfer of ownership to local firms over a certain period of time (fade-out requirements),and the nationalization of local operations of MNCs.
• D)none of the options

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Definitions:

Variable Interests

Interests in an entity that change based on changes in the entity's net asset value, income, or cash flows.

Lease Residual Value

The estimated value of a leased asset at the end of the lease term.

Loss on Sale

Occurs when the sale price of an asset is less than its carrying amount on the books.