One Explanation for Foreign Equity Ownership Restrictions

question 74

Multiple Choice

One explanation for foreign equity ownership restrictions

• A)is to make it difficult or impossible for foreigners to gain control of a domestic company.
• B)is to expropriate wealth from domestic shareholders.
• C)is the arguments in favor of free trade.
• D)none of the above

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Definitions:

Factoring

Financing method where a firm sells its accounts receivables, usually to a specialized financing company, at a discount to their full value.

Receivables

Payments due from clients to a business for the delivery of goods or services that have not yet been compensated.

Collateral

An asset or property that a borrower offers to a lender as security for a loan, which the lender can seize if the borrower fails to make required payments.

Installment Loan

A loan that is repaid over time with a set number of scheduled payments.