Finance Management: Matching Financing to Benefits
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Questions and Answers

What is a risk associated with investing in emerging or foreign markets due to the government?

  • Political unrest (correct)
  • Economic stability
  • Reliable information
  • Liquidity

Why is it challenging for investors to make informed decisions in foreign markets?

  • Due to the lack of a stable government
  • Due to the lack of a strong economy
  • Due to the lack of reliable information (correct)
  • Due to the lack of liquidity

What is the term used to describe the risk of not being able to sell shares quickly without incurring a loss?

  • Political risk
  • Economic risk
  • Regulatory risk
  • Liquidity risk (correct)

How many countries operate their own securities exchanges?

<p>More than 60 countries (A)</p> Signup and view all the answers

What is the primary concern for international business leaders when investing in manufacturing plants?

<p>The government's stability (D)</p> Signup and view all the answers

What is the primary source of information for investors in foreign markets?

<p>Financial information from various sources (A)</p> Signup and view all the answers

What is the primary benefit of investing internationally?

<p>Not mentioned in the text (D)</p> Signup and view all the answers

What regulates the securities markets?

<p>Both state and federal governments (C)</p> Signup and view all the answers

What is the primary reason investors are hesitant to invest in emerging markets?

<p>Political unrest (B)</p> Signup and view all the answers

What is the term used to describe the risk of investing in a country with frequent political changes?

<p>Political risk (B)</p> Signup and view all the answers

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