Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A)A lender wishing to provide funds to a borrower residing in a foreign country only needs to consider the credit quality of the borrower.
• B)A lender wishing to provide funds to a borrower residing in a foreign country only needs to consider the sovereign risk quality of the country in which the borrower resides.
• C)A lender wishing to provide funds to a borrower residing in a foreign country should consider either the credit quality of the borrower or the sovereign risk quality of the country in which the borrower resides.
• D)A lender wishing to provide funds to a borrower residing in a foreign country should consider both the credit quality of the borrower and the sovereign risk quality of the country in which the borrower resides.

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Definitions:

Franchisors

Individuals or companies that grant the license to a third party for the conducting of a business under their marks.

Disclosure Statements

Documents that detail and disclose relevant financial and operational information about a specific investment or transaction.

CPA

Stands for Certified Public Accountant, a professional designation given to accounting professionals who have passed a licensing examination and met other state requirements.

Lawyer

An expert who is capable of giving guidance on legal issues or representing individuals in legal proceedings.