BT (American) is considering opening a factory in the Ukraine. The Ukraine political environment is a concern. To protect itself in case of nationalization by the Ukraine government, BT should:
a. seek a guarantee from the World Bank
b. not be concerned; overseas investments are protected by the Export Administration Act
c. not be concerned; overseas investments are protected by the Export Trading Company Act
d. buy an "all risk" insurance policy to cover losses in case of nationalization of specified property
e. demand a higher rate of return because projects with the Ukraine and Third World countries are inherently risky
d
You might also like to view...
What role do accounting records play in the adjustment process?
Assume common stock is issued to employees as a result of exercising stock purchase rights issued under a noncompensatory share purchase plan. At what value does the company record that stock in its books?
A) market price of the stock B) exercise price of the stock C) market price of the stock at the first date that the stock purchase right can be exercised D) option price of the stock plus the value assigned to the stock purchase right
To learn more about a company and its inherent risks, auditors can use which of the following resources?
a. Management inquiries. b. Economic statistics. c. Online searches. d. Any of the above could be used.
________ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production
A) Proposal solicitation B) General needs description C) Order-routine specification D) Cost-benefit analysis E) Product value analysis