Which of the Following Would Probably Not Cause the Stock

question 68

Multiple Choice

Which of the following would probably not cause the stock price of a foreign target to decrease?

• A) Its expected cash flows decline.
• B) General stock market conditions in the foreign country are deteriorating.
• C) Investors anticipate that the target will be acquired.
• D) All of the above will cause the target's stock price to decrease.

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Definitions:

Corporate Responsibility

The ethical obligation of a company to act in ways that benefit society and the environment, beyond its business interests.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, representing the portion of sales that turns into profit.

Stakeholders

Any group that a business interacts with, such as customers, competitors, unions, suppliers, consumer groups, and government agencies.

Standards Of Conduct

Formal or informal rules that govern behaviors within a group, organization, or society, often reflecting shared values and norms.