When a Foreign Judgment Is Obtained Against a Business or Individual,which

question 17

Multiple Choice

When a foreign judgment is obtained against a business or individual,which of the following statements is true?

• A)If the business has no assets in the foreign jurisdiction or if there is no treaty in place to allow for enforcement,enforcement is a substantial threat.
• B)Whether a business resides in a foreign or domestic jurisdiction presents no problems regarding enforcement.
• C)Since the business resides in a foreign jurisdiction,there is no threat of enforcement.
• D)Since the judgment is obtained in a foreign jurisdiction,the business or individual may be extradited to face criminal charges.
• E)If the business has assets in the foreign jurisdiction or there are treaties in place to allow for enforcement,it is quite likely that the foreign judgment will be enforced.

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Definitions:

Income Taxes

Government levies on the earnings of individuals and companies within their territory.

After-Tax Discount Rate

The discount rate used in investment or project valuation that accounts for the effects of taxes on the project's cash flows.

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life.

Initial Investments

The initial amount of money invested in a project, asset, or company to start operations or purchase assets.