In a direct foreign investment, which of the following statements is true of the direct investors?
A)They do not have a controlling interest in the firm.
B)They possess the lowest potential risk.
C)They have the highest potential reward.
D)They have a small minority interest in the foreign firm.

Question

Quizplus · Accepted Answer

Direct foreign investors have the highest potential reward as they typically invest significant amounts of capital and are able to acquire a large stake or controlling interest in the foreign firm. However, this also comes with higher risks as they are directly exposed to the economic and political conditions of the foreign country. Choices A, B, and D are incorrect as they are either false or do not accurately describe direct foreign investors.

In a Direct Foreign Investment, Which of the Following Statements