Which of the Following Is Not an Advantage of International

question 42

Multiple Choice

Which of the following is not an advantage of international acquisitions over the establishment of a new subsidiary?

• A) The firm can immediately expand its international business.
• B) An international acquisition typically generates quicker cash flows than the establishment of a new subsidiary.
• C) International acquisitions are generally cheaper than the establishment of a new subsidiary.
• D) An international acquisition typically generates larger cash flows than the establishment of a new subsidiary.
• E) All of the above are advantages of international acquisitions.

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Definitions:

Compounded Semiannually

This process involves the interest being calculated and added to the principal sum twice a year, leading to interest on interest.

Compound Interest

Interest determined on the original amount of a deposit or loan, incorporating all the earned interest from past periods as well.

Compounded Semiannually

A method of calculating interest where the interest is added to the principal twice a year, leading to interest earned on interest.

Compounded Annually

This refers to the process of calculating interest on an investment or loan on a yearly basis, where interest from one year is added to the principal for calculation of interest in the next year.