Two main risk sources need be considered when investing in a foreign country:
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Economic risk: This risk refers to a country's ability to pay back its debts. A country with stable finances and a stronger economy should provide more reliable investments than a country with weaker finances or an unsound economy.
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Political risk: This risk refers to the political decisions made within a country that might result in an unanticipated loss to investors. While economic risk is often referred to as a country's ability to pay back its debts, political risk is sometimes referred to as the willingness of a country to pay debts or maintain a hospitable climate for outside investment. Even if a country's economy is strong, if the political climate is unfriendly (or becomes unfriendly) to outside investors, the country may not be a good candidate for investment.</span></span><span>
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<span>c. earnings before interest and taxes .
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Answer:
156.6%
Explanation:
Given:
Cosi Company's Incurred over head for the next period = $830,000
Expected labor hours = 53,000
Cost of labor = $10.00 per hour
Thus,
Total labor cost = 53,000 × $10.00 = $530,000
Now,
the Cosi Company's predetermined overhead rate will be calculated as:
Predetermined overhead rate = Incurred overhead / Total labor cost
on substituting the respective values, we get
Predetermined overhead rate = ( $830,000 / 530,000 ) = 1.566
or
Predetermined overhead rate = 1.566 × 100% = 156.6%
Answer:
D
Explanation:
A warranty is a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time.
