____ Are Most Commonly Classified as a Direct Foreign Investment

question 16

Multiple Choice

____ are most commonly classified as a direct foreign investment.

• A) Foreign acquisitions
• B) Purchases of international stocks
• C) Licensing agreements
• D) Exporting transactions

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules and standards designed to ensure consistency, fairness, and accuracy in financial reporting and accounting practices in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Factoring Transaction

A financial transaction where a business sells its accounts receivable to a third party at a discount to obtain immediate cash.

Risks And Rewards

The potential positive or negative outcomes of business activities or investments, considering the chance of gain or loss.