Many Complex International Negotiations Devote a Great Deal of Time

question 35

Multiple Choice

Many complex international negotiations devote a great deal of time to the question of just who will be recognized and who can speak for others.The issue about participants can be decided by asking which of the following questions?

• A) Whose presence is likely to keep other parties from achieving their objectives?
• B) Whose presence is likely to help other parties achieve their objectives?
• C) Who could spoil the deal if they were excluded?
• D) All of the above questions can help decide who to recognize.
• E) None of the above questions will help determine inclusion/exclusion.

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Definitions:

Optimal Level

The most favorable point, amount, or degree of something for a particular situation, which maximizes efficiency or returns.

M&M Proposition II

Part of the Modigliani-Miller theorem on capital structure, stating that the cost of equity increases with higher levels of debt, as a consequence of the increased risk taken by equity holders.

Cost of Equity

The compensation that investors demand for bearing the risk of owning stock, usually reflected by earnings or dividend growth expectations.

Required Rate of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.