All of the Following Are Political Risks to the Assets

question 55

Multiple Choice

All of the following are political risks to the assets and cash flows of multinational corporations EXCEPT:

• A) government seizure of a company's assets in the country.
• B) enactment of new taxation.
• C) expropriation with minimal compensation.
• D) improving exchange rates to stimulate foreign investment.

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Definitions:

Commercial Substance

A concept in accounting that a transaction has commercial substance if it significantly changes the economic position or cash flows of the company.

Construction Cost

Expenses incurred in the building of physical structures, including materials, labor, and overhead costs.

Parking Lot

A parking lot is a designated area or facility for parking vehicles, often paved and marked for individual spaces.

Salvaged Materials

Items recovered from waste or by-products that can be reused, recycled, or sold, often contributing to cost savings or additional income.