The Existence of the Rule of Law in a Foreign

question 95

Multiple Choice

The existence of the rule of law in a foreign market suggests that

• A) lawyers will be necessary in any substantive business transaction.
• B) personal relationships will be less effective than in a country governed outside the rule of law system.
• C) legal rulings will be the basis of any dispute resolution.
• D) foreign investors can assume that their interests will be protected.

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Definitions:

Direct Expense

Costs that can be directly attributed to the production of goods or services, such as raw materials or labor.

Cost Center

A division or department within a business to which costs can be allocated for accounting and budgeting purposes.

Indirect Expense

Costs not directly traceable to a specific cost object, such as overhead or administrative expenses, which support the operation of the business as a whole.

Profit Center

A branch or division of a company that is directly responsible for generating its portion of the organization's overall profit.