Which of the Following Statements Is an Example of Vertical

question 85

Multiple Choice

Which of the following statements is an example of vertical FDI?

• A) An American company purchases a British soccer team.
• B) Ford Motor company establishes a plant in Canada.
• C) GM opens a plant in India.
• D) BMW opens a plant in Bilbao, Spain.

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Definitions:

Account Type

A classification used in accounting to differentiate various types of financial records, such as assets, liabilities, equity, revenues, and expenses.

Profitable

A financial condition where income exceeds expenses resulting in a net gain.

Accounting Equation

The fundamental formula in accounting that states that assets equal liabilities plus equity.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the business.