Which of the Following Is a True Statement

question 111

Multiple Choice

Which of the following is a true statement?

• A) Direct foreign investment to DVCs is increasingly provided by commercial banks.
• B) Direct foreign investment to DVCs has dwindled to near zero in recent years.
• C) Approximately 5 percent of the GDP of IACs goes to foreign aid.
• D) Foreign aid from the IACs to the DVCs has greatly expanded in the past several years.

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Definitions:

Shareholders Before Creditors

This principle dictates that in the hierarchy of corporate structure, shareholders' equity is ranked lower than the claims of creditors in the event of a liquidation.

Ordinary Unsecured Creditor

A creditor who has no special rights to assets of a debtor in the event of the debtor's bankruptcy.

Trade Creditors

Entities to whom money is owed for goods and services provided on credit as part of normal business operations.

Liquidator's Remuneration

The compensation paid to a liquidator for their services in administrating the process of winding up a company's affairs and distributing its assets.