Which of the Following Is an Example of U

question 132

Multiple Choice

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

• A)A Greek company opens a cheese factory in the U.S.
• B)A German mutual fund buys stock issued by a U.S.corporation.
• C)A U.S.beverage company opens a bottling plant in Russia.
• D)A U.S.bank buys bonds issued by an Argentinean company.

---

Definitions:

Loss on Sale

The financial loss incurred when the selling price of an asset is less than its carrying value on the balance sheet.

Gain on Sale

A financial gain that occurs when the selling price of an asset exceeds its purchase price or book value.

Stock Investment

The purchase of shares in a company with the expectation of earning a return on investment through dividends, share price appreciation, or both.

Dividend

A portion of a company's earnings distributed to shareholders as a reward for their investment.