Capital market segmentation is a financial market imperfection caused mainly by government constraints, institutional practices, and investor perceptions. List and explain three imperfections
What will be an ideal response?
Answer: The following are the most important imperfections: 1) Asymmetric information between domestic and foreign-based investors, 2) Lack of transparency, 3) High securities transaction costs, 4) Foreign exchange risks, 5) Political risks, 6) Corporate governance differences, 7) Regulatory barriers.
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The prestige of occupations varies dramatically from one culture to the next
Indicate whether the statement is true or false
Considerations in selecting a layout include ______.
A. producing products and services that are cost-effective B. circumventing government regulations C. abiding by ISO requirements D. ensuring that high prices can be charged
Which of the following actions, if taken, would violate the marketing ethics code?
A) the Good Green Grocer raising its prices on its popular items B) the Good Green Grocer advertising that its products will help people "feel healthy" C) the Good Green Grocer lowering prices in order to better compete with larger supermarkets D) the Good Green Grocer labeling as "organic" products that were grown using pesticides E) the Good Green Grocer contributing a percentage of its profits to NGOs
Transactions dealing with the exchange of cash between the firm and its owners (stockholders) and creditors are classified as financing activities on the statement of cash flows
Indicate whether the statement is true or false