To Determine Risks of Nondomestic Bonds, a Multinational Corporation Must

question 94

Multiple Choice

To determine risks of nondomestic bonds, a multinational corporation must consider all but which one of the following risks?

• A)political and economic risks
• B)seizure or expropriation of assets
• C)stabilized currencies
• D)foreign exchange controls and tax regulations

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Definitions:

Voting Power

Voting power refers to the number of votes a shareholder has in a company's decisions, typically based on the number of shares held.

Marginal Tax Bracket

The rate at which the last dollar of a taxpayer's income is taxed, indicating the tax rate applied to their highest portion of income.

Corporate Bond

A debt security issued by a corporation to raise capital, promising to repay the borrowed amount plus interest at a specified future date.