ABC Inc, a Company Based in the United States, Operates a a Subsidiary

question 73

Multiple Choice

ABC Inc., a company based in the United States, operates a subsidiary in Egypt. ABC is dealing with a loss of investment and control over its assets in Egypt due to instability and political changes. Which of the following is ABC Inc. facing?

• A) Cultural integration issues
• B) Globalization
• C) Political risk
• D) Competitive threat

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Definitions:

Successful Companies

Firms that consistently achieve their goals, satisfy their stakeholders, and maintain profitability and growth over time.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a company.

Paid in Excess

Funds that are received by a company over and above the par value of its stock; typically recorded as part of the additional paid-in capital on the balance sheet.

Retained Earnings

Profits that a company keeps or retains rather than distributing to shareholders as dividends, often used for reinvestment.