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3 years ago

What factors , other than tax incentives, should companies evaluate before deciding to invest in a particular country ?

Business

1 answer:

Reptile [31]3 years ago

7 0

Two main risk sources need be considered when investing in a foreign country:

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.


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.

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Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-st

eduard

Answer:

Part a

Blossom Company

Income statement for the year 2014 - multiple-step form

$000

Sales revenue 97,088

Less Cost of goods sold (61,158)

Gross Profit 35,930

Less Operating Expenses :

Administrative expense

Officers' salaries 5,488

Depreciation of office furniture and equipment 4,548 (10,036)

Selling expense :

Delivery expense 3,278

Sales commissions 8,568

Depreciation of sales equipment 7,068 (18,914)

Operating Income (Loss) 6,980

Less Non Operating Expenses :

Income tax 9,658

Interest expense 2,448 (12,106)

Net Income (Loss) (5,126)

Part b

Blossom Company

Income statement for the year 2014 - single-step form

$000

Sales revenue 97,088

Less Cost of goods sold (61,158)

Gross Profit 35,930

Less Expenses :

Officers' salaries 5,488

Depreciation of office furniture and equipment 4,548

Delivery expense 3,278

Sales commissions 8,568

Depreciation of sales equipment 7,068

Income tax 9,658

Interest expense 2,448 (41,056)

Net Income (Loss) (5,126)

Explanation:

The multiple-step form shows the Operating Income and Net Income separately by grouping expenses as either operating and non-operating expenses.

The single-step form shows all expenses under one category and no grouping of expenses as either operating or non-operating.

4 0

2 years ago

Select cost information for seacrest enterprises is as follows: 1,000 units of output 5,000 units of output total cost/unit tota

nasty-shy [4]

Answer:

Not sure but I think is B. again not sure

Explanation:

3 0

3 years ago

Read 2 more answers

Pier is trying to determine which leadership style to use in making a decision that may have a major impact on his company. He’s

oksian1 [2.3K]

Answer:

The answer is: Normative leadership model

Explanation:

The normative leadership model requires Pier to analyze the following seven situations:

How will my decision will affect the organization?
Is it important that team members are committed to the decision making process.?
As a leader, do I possess the knowledge to solve try to solve this issue?
If only I are responsible for making the decision, will the rest of the team be committed to it?
My team members support me and the organization?
The team members possess the knowledge to try to solve this issue?
Can team members unite and really work as a team to solve this issue?

Depending on what Pier believes the correct answers are for the above questions, he can decide to use one of the following decision making processes:

Decide: Pier makes the decision by himself with little or no participation of the team members.
Consult (Individually): Pier consults the team members individually, deciding what information to use, and then makes a decision by himself.
Consult (Group): Pier organizes a group meeting where all members express their opinions, then decides what information is useful and makes the decision by himself.
Facilitate: Pier organizes a group meeting and presents his opinion and every group member participates. The decision is made by group consensus.
Delegate: Pier leaves the decision making process entirely to the group members and doesn't participate in it.

6 0

3 years ago

Accounts receivable arising from sales to customers amounted to $84,000 and $74,000 at the beginning and end of the year, respec

solmaris [256]

Answer:

$330,000

Explanation:

Change in WC = Opening receivables - Closing receivables

Change in WC = $84,000 - $74,000

Change in WC = $10,000

The decrease in working capital is $10,000

Cash from operating activities = Net income + Decrease in Working Capital

Cash from operating activities = $320,000 + $10,000

Cash from operating activities = $330,000

Thus, the cash from operating activities is $330,000

4 0

2 years ago

You want to buy an Audi A8 7 years from now. You have priced these cars and found that they currently sell for $83,800. You beli

lana [24]

Answer:

We to invest $ 17,213 per year to buy the car in seven years from now

Explanation:

First, we solve for the future value of the car:

$Principal \: (1+ r)^{time} = Amount$

Principal 83,800.00

time 7.00

rate 0.10000

$83800 \: (1+ 0.1)^{7} = Amount$

Amount 163,302.49

Then, for the PTM to achieve tham amount in 7 years:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

FV 163,302

time 7

rate 0.1

$163302.49298 \div \frac{(1+0.1)^{7} -1 }{0.1} = C\\$

C $ 17,212.981

8 0

3 years ago