Capital Flight from the DVCs May Be Caused by

question 46

Multiple Choice

Capital flight from the DVCs may be caused by

• A)a fear of government privatization efforts.
• B)slow domestic inflation.
• C)low rates of domestic taxation.
• D)risks of severe fluctuations in exchange rates.

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Definitions:

Consolidated Equity

The total equity of a parent company and its subsidiaries after intercompany balances and transactions have been eliminated.

Equity Method

An accounting technique used in consolidating financial statements whereby an investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or losses.

Voting Shares

Shares of a company's stock that grant the shareholder the right to vote on corporate matters.

Purchase

The acquisition of goods or services in exchange for money, contributing to a company's expenses.