The Purchase of Less Than 10 Percent of the Shares

question 204

Multiple Choice

The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a

• A) portfolio investment.
• B) foreign direct investment.
• C) foreign indirect investment.
• D) negligible investment.

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's net income that is paid out to its shareholders as dividends.

Year 2

A term that refers to the second year in a specific period, often used in planning, reporting, or comparison contexts.

Book Value Per Share

A financial measure used to determine the per share value of a company based on its equity available to shareholders.

Year 2

Refers to the second year of a specified time frame or period, often used in financial and operational planning or analysis.