The Most Serious Type of Political Risk Involves

question 80

Multiple Choice

The most serious type of political risk involves

• A) restrictive labor concerning hiring, wages and layoffs.
• B) major changes in tax rates.
• C) price and wage controls.
• D) expropriation of assets with limited compensation.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity levels for operating needs.

Total Assets

The sum of all assets owned by a company, indicating the total resources at its disposal.

Secured Debt

A debt that is backed by collateral, providing the lender a claim to the asset if the loan is defaulted.

Transfer Ownership

The act of transferring the legal rights of an asset from one party to another.