A Government That Enforces Its Own Laws on Foreign Subsidiaries

question 84

Multiple Choice

A government that enforces its own laws on foreign subsidiaries of its domestic companies practices ________.

• A) civil law
• B) relativism
• C) externality
• D) extraterritoriality

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Definitions:

Common-sized Statement

A financial statement in which each line item is expressed as a percentage of a relevant total, which allows for easy comparison across time periods or companies.

Financial Analysis

The process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Different Industries

Various sectors of the economy that produce or distribute goods and services, such as technology, healthcare, and manufacturing.

Common-sized Financial Statements

Financial statements that present all line items as a percentage of a common base figure, facilitating comparison across periods or companies.