Which of the Following Kinds of Risk Is NOT Uniquely

question 90

Multiple Choice

Which of the following kinds of risk is NOT uniquely associated with multinational corporations (MNCs) ?

• A) Exchange rate risk
• B) Business risk
• C) Political risk
• D) None of these options are uniquely associated with MNCs.

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Definitions:

Double Diminishing-Balance

An accelerated method of depreciation that calculates expense by doubling the straight-line depreciation rate applied to the declining book value of an asset.

Depreciation Expense

The allocated reduction in the value of a tangible asset over its useful life, recognized as an expense on the income statement.

Residual Value

The projected value that an asset is anticipated to yield when it is disposed of after its lifespan has concluded.

Depreciation Method

A systematic approach used to allocate the cost of an asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.