A Firm That Enters into A(n)_____ Will Have No Long-Term

question 98

Multiple Choice

A firm that enters into a(n) _____ will have no long-term interest in the foreign country.

• A)joint venture
• B)green-field investment
• C)acquisition
• D)turnkey deal

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Definitions:

Financing Activity

Transactions involved in raising, repaying, or restructuring the capital funding of a company, as reflected in the cash flow statement.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from revenue.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.

Indirect Method

A method of presenting the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.