Korman Industries Is a Foreign Multinational That Recently Established Operations

question 79

Multiple Choice

Korman Industries is a foreign multinational that recently established operations in the European Union.What is the most likely advantage for Korman as a result?

• A)Governance processes are streamlined because local governments have been eliminated.
• B)Market size is larger because of the elimination of internal tariff barriers.
• C)Differential external tariff barriers exist for product shipments.
• D)The EU uses English as its official language.

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Definitions:

Dividend Liability

Refers to the amount a company owes to its shareholders after the board of directors declares a dividend but before the company has actually paid it.

Date of Declaration

The specific date on which a company's board of directors announces its intention to pay a dividend to shareholders.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, and must be paid out before common stock dividends.

Par Common Stock

The nominal or face value assigned to common stock by the issuing company.