Which of the Following Factors in a Country Is Most

question 89

Multiple Choice

Which of the following factors in a country is most likely to cause political risk for an international business?

• A)presence of more than one ethnic nationality
• B)infrequent changes in government and government policy
• C)low inflation rate
• D)low level of government debt
• E)high living standards

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Definitions:

Acquired Land

Land obtained through purchase or other means, which appears as an asset on the balance sheet and might be used for operations or investment.

Parent Company

A corporation that owns more than half of the voting stock of another company, thereby controlling it and often consolidating its financial statements with its own.

Current Accounting Regulations

The prevailing rules and standards that govern how financial records are maintained and reported, varying by jurisdiction and overseen by regulatory bodies.

Non-current Assets

These are assets held for long-term use in a business, not expected to be converted into cash within one year, such as property, plant, and equipment.