What are the two general categories of risk analyzed by rating agencies in assigning
a sovereign rating?
What will be an ideal response?
Sovereign debt is the obligation of a country's central government. The debt of national governments is rated by the rating agencies. There are two sovereign debt ratings assigned by rating agencies: a local currency debt rating and a foreign currency debt rating.Standard &Poor's, Moody's, and Fitch all assign ratings to sovereign bonds. The two general categories are economic risk and political risk.
The economic risk category involves an assessment of the ability of a government to satisfy its obligations. Both quantitative and qualitative analyses are used in assessing economic risk. The politicalrisk category involves an assessment of the willingness of a government to satisfy its obligations. A government may have the ability to pay but may be unwilling to pay. Political risk is assessed based on qualitative analysis of the economic and political factors that influence
a government's economic policies.
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Which of the following does not fit in with the factors that should be considered by companies forming GSPs?
A) Partners are competitors to each other. B) Harmony is the most important measure of success. C) All employees and managers must understand where cooperation ends and competitive compromise begins. D) Learning from partners is critically important. E) none of the above
The _________ is the higher-status person and the ____________is the lower-status person.
a. superior; subordinate b. subordinate; superior c. inferior; subordinate d. superior; inferior
If Accounts Payable has debit postings of $17,000, credit postings of $14,000, and a normal ending balance of $6,000, what was its beginning balance?
a. $9,000 Cr. b. $3,000 Cr. c. $9,000 Dr. d. $3,000 Dr.
In which of the columns of a worksheet would a net loss be found?
A) in the balance sheet credit column and the income statement debit column B) in the balance sheet debit column and the income statement credit column C) in the unadjusted trial balance credit column, the adjusted trial balance credit column, and the balance sheet credit column D) in the unadjusted trial balance debit column, the adjusted trial balance debit column, and the balance sheet debit column