Executives at a U

question 18

Multiple Choice

Executives at a U.S.firm are debating whether to start a new operation in Russia or acquire an existing one.Which of the following factors best supports a decision to start up a new operation in Russia?

• A)The Russian government places restrictions on the outward transfer of foreign capital.
• B)Labor relations at existing Russian firms are poor and difficult to change.
• C)Russia's currency is weak and stock market prices are significantly depressed.
• D)Existing companies have goodwill and positive brand recognition in Russia.

---

Definitions:

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, usually with fixed dividends.

Insolvent

A financial state in which an individual or entity can no longer meet their monetary debts as they come due.

Participating Preferred Stock

A type of preferred stock that provides its holders with dividends that exceed the stated dividend rate in certain situations, often when the company performs well.

Statutory Ratification

The process by which a legislative body formally approves an action, treaty, or agreement previously enacted or signed.