Operational Risk Refers to the Risk Which Arises from the Uncertainty

question 76

Multiple Choice

Operational risk refers to the risk which arises from the uncertainty about

• A)the host's country's policies affecting the local operations of an MNC.
• B)the host's country's policy regarding ownership and control of local operations.
• C)cross-border flows of capital, payment, know-how, and the like.
• D)none of the above

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Definitions:

Fair Value

An estimate of the price at which an asset could be bought or sold in a current transaction between willing parties, not in a forced or liquidation sale.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Stock Splits

Corporate actions that increase the number of shares outstanding, reducing the price per share but not changing the company's overall market capitalization.