When Determining Whether a Particular Proposed Project in a Foreign

question 33

Multiple Choice

When determining whether a particular proposed project in a foreign country is feasible:

• A) a country risk rating can adequately substitute for a capital budgeting analysis.
• B) country risk analysis should be incorporated within the capital budgeting analysis.
• C) the effect of country risk on sales revenue is more important than the effect on cash flows.
• D) the project with the highest country risk rating (lowest country risk) should be accepted.
• E) B and D

---

Definitions:

Employer-provided

Describes benefits or services supplied by an employer to their employees, often including health insurance, pensions, or training.

Group Medical Insurance

A healthcare policy issued to a group of people, offering uniform coverage and benefits to all members, often through an employer.

Independent Contractors

Individuals or businesses that provide goods or services to another entity under terms specified in a contract, without being legally considered employees.

Contract Basis

A method or agreement involving specific terms and conditions under which services or work will be performed.