Which of the Following Statements Is True

question 48

Multiple Choice

Which of the following statements is true?

• A)The most common approach to evaluating country risk among large FIs is to develop sovereign country risk scoring models based on economic ratios for each country.
• B)The most common approach to evaluating country risk among large FIs is to develop sovereign country risk scoring models based on political ratios for each country.
• C)The most common approach to evaluating country risk among large FIs is to develop sovereign country risk scoring models based on industry performance ratios for each country.
• D)The most common approach to evaluating country risk among large FIs is to develop sovereign country risk scoring models based on financial performance ratios for each country.

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Definitions:

Sole Proprietorship

A type of enterprise that is owned and operated by one person, with no legal distinction between the owner and the business entity.

Corporation

A legal entity established by individuals, stockholders, or shareholders, with separate legal rights and liabilities distinct from those of its owners, used to conduct business.

General Partner

A member of a partnership who has unlimited liability and is responsible for the management of the partnership.

Limited Partnership

A business structure with at least one general partner who manages the business and assumes unlimited liability, and one or more limited partners who provide capital and have limited liability.