Recently an oil rig in the Gulf of Texas blew up causing the value of your stock in the company who owns the oil rig to fall. What type of risk does this represent?
A) Diversifiable risk
B) Systematic risk
C) Political and regulatory risk
D) Both B and C
Answer: A
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An increase in a revenue account may reflect a decrease in a liability account
a. True b. False Indicate whether the statement is true or false
On the balance sheet, treasury stock is presented as a
A) ?long-term investment account. B) ?contra shareholders' equity account. C) ?companion shareholders' equity account. D) ?contra asset account.
Examples of expropriation without compensation involve the following governments:
A. China with Hong Kong and Japan with the Kuril Isl. B. the U.K. with the Falklands. C. Canada with northern Maine. D. the U.S. with Iranian property in the U.S., Cuba with U.S. property in Cuba, and Zimbabwe with land owned by white Zimbabwean citizens.
Boomerang Corporation, a New Zealand corporation, is owned by the following unrelated persons: 40 percent by a U.S. corporation, 15 percent by a U.S. individual, and 45 percent by an Australian corporation. During the year, Boomerang earned $3,000,000 of subpart F income. Which of the following statements is true about the application of subpart F to the income earned by Boomerang?
A. Boomerang is not a CFC and none of the shareholders will have a deemed dividend under subpart F. B. Boomerang is a CFC and the U.S. corporation, U.S. individual, and Australian corporation will have a deemed dividend of $1,200,000, $450,000, and $1,350,000, respectively. C. Boomerang is a CFC and only the U.S. corporation will have a deemed dividend of $1,200,000. D. Boomerang is a CFC and the U.S. corporation and U.S. individual will have a deemed dividend of $1,200,000 and $450,000, respectively.