Which of the Following Are Reasons for Foreign Firms to List

question 14

Multiple Choice

Which of the following are reasons for foreign firms to list their shares in the United States?
I.Ability to raise new capital in world's largest financial base
II.Enlarged investor base
III.Lower transactions costs
IV.Eliminate foreign exchange risk

• A) I and II
• B) I, III, and IV
• C) I, II, and III
• D) I, II, III, and IV

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Definitions:

Total Cost

The total expense incurred in the production of goods or services, including both fixed and variable costs.

Computer Software

Software and data that enable a computer to execute particular tasks.

Opportunity Cost

The sacrifice of possible benefits from other options when selecting a specific one.

Income Tax

A tax levied by governments on individuals' or entities' income and earnings.