On Global Projects with a Large Amount of Political Risk

question 30

Multiple Choice

On global projects with a large amount of political risk, the highest portion of risk may be _____.

• A) in the execution phase
• B) in the planning stage
• C) toward the end of the project
• D) in the early phases of the project
• E) during the procurement of goods and services

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Definitions:

EV/EBITDA Ratio

A valuation metric comparing a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization, highlighting company profitability.

Geographically

Pertaining to or based upon the natural features, population, industries, etc., of regions or places.

Quick Ratio

A liquidity metric indicating a company’s capacity to meet short-term obligations with its most liquid assets without selling inventory.

Common Size Statements

Financial statements that present all line items as percentages of a common base figure rather than in absolute numbers, facilitating comparison across periods and companies.