A Major Aspect of Operating a Business in a Host

question 67

Multiple Choice

A major aspect of operating a business in a host country is the business risk that must be assumed.Which of the following is NOT a business risk?

• A)A severe drought
• B)The risk of the firm being nationalized by the host country.
• C)A rise in interest rates
• D)A shift in exchange rates

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Definitions:

Taxable Income

Income subject to tax by federal, state, or local tax authorities.

Gross Income

The total revenue received before any deductions or allowances, typically in the context of business revenues or individual wages before taxes.

Deductions

Amounts subtracted from gross income to reduce taxable income, including certain expenses, contributions, and allowances.

Sales Tax

A tax imposed by a government on the sale of goods and services, usually calculated as a percentage of the sales price.