Which One of the Following Are NOT a Barrier to International

question 16

Multiple Choice

Which one of the following are NOT a barrier to international diversification.

• A)lack of foreign market liquidity
• B)easy convertibility of many currencies
• C)inadequate information
• D)lack of international accounting standards

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Definitions:

Equity Sold

The process of selling ownership interest in a company in exchange for capital.

Net Capital Spending

The total expenditure on capital assets, minus any sales of existing assets.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating the company's ability to generate sufficient positive cash flow to maintain and grow its operations.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all incomes and expenses except interest and income taxes.