Which of the Following Is an Example of U

question 191

Multiple Choice

Which of the following is an example of U.S.foreign direct investment?

• A)A Chinese company opens a restaurant in the U.S.
• B)An Australian bank buys stocks issued by a U.S.corporation.
• C)A U.S.bank buys bonds issued by an Australian corporation.
• D)A U.S.company opens an auto parts factory in Canada.

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Definitions:

Factoring Receivables

The financial transaction of selling accounts receivable to a third party (factor) at a discount to obtain immediate cash.

Factor

An element or component that contributes to a particular result or situation.

Bad Debts

Accounts receivable that are considered to be uncollectible, representing losses to the company.

Promissory Note

A monetary tool that includes a formal pledge from one entity to another to pay a certain amount of money, either when asked or on a predetermined date in the future.