Why may equity finance be preferred to debt finance for developing countries?
A) A fall in domestic income automatically reduces the earnings of foreign shareholders without violating any loan agreement.
B) There are laws insuring against any default with equity finance.
C) The risk is shared between debtor and creditor with debt finance.
D) The tax structure leaves equity finance unconstrained.
E) Repayments are unaffected by falls in real income.
A
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The relationship between the quantity of inputs and the quantity of outputs is called a:
A. cost function. B. production function. C. profit function. D. resource function.
The expression "There's no such thing as a free lunch" means
A) each person must pay for exactly what he or she receives. B) when scarce resources are used to produce one good they are unavailable to produce others. C) you cannot have a free lunch at the expense of someone else. D) if one person gains, someone else must lose.
Scenario: Gem Jewels Gem Jewels recently established a number of subsidiaries in various foreign countries aiming to build high levels of international business involvement in the coming years. Cultural training has to be given by the company to home-country managers assigned to work in the new subsidiaries. To teach its employees the values, attitudes, manners, and customs of the host-country culture, Gem Jewels should offer ________.
a. language training b. environmental briefings c. cultural assimilation d. field experience
The utility that people experience from the consumption of a good depends on
A) their income level. B) their tastes and preferences. C) total sales of the good. D) how much shopping time they spent obtaining the good.