When the government of a country may possibly default on its bond payments to outside investors, the risk is referred to as
A) political risk.
B) nationalization risk.
C) sovereign risk.
D) business risk.
Answer: C
You might also like to view...
The ________ the level of environmental sensitivity for a given product, the ________ the need for managers to address country-specific economic, regulatory, technological, social, and cultural environmental conditions
A) greater; greater B) lower; greater C) greater; lower D) lower; lower E) stronger; greater
Countries undergoing marketization that all had been called transition economies in the late 1980s and 1990s have diverged from one another quite substantially but all contain some vestiges of ______.
A. state socialism B. capitalism C. economic transition D. marketization
Levitz entered into an agreement to sell property to Safeway. Safeway placed a condition in the agreement that required Levitz to obtain title to and sell to Safeway the lot adjoining the property that was the subject matter of the contract. Levitz was unable to acquire title to the adjoining lot but sought to go forward with the sale. Safeway refused. What result?
The Cyprus Company recently lost its entire inventory in a fire. The accounting records reflect the following information:
Using the gross profit method, estimated inventory is:
A) $102,600
B) $29,520
C) $36,000
D) Cannot be determined with given information.