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.

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Definitions:

Cash Flows

The aggregate sum of funds moving in and out of a company, particularly influencing its ability to cover short-term obligations.

Indirect Method

A technique used in cash flow statements to adjust net income for changes in non-cash items to calculate net cash from operating activities.

Statement of Cash Flows

This report details the fluctuations in balance sheet accounts and how income influences cash and cash equivalents, categorizing these changes into operating, investing, and financing sections.

Operating Activities

Activities that relate to the primary operations of a company, influencing its net cash flow from operating income.