Scenario: Verandas International
Verandas International is expanding its operations in North America. The Dutch company supplies products needed by restaurants with outdoor tables. Verandas International is a leader in this industry, but the company believes it must increase its geographic reach to maintain that position.
-If Verandas International chooses to pursue equity financing, but wants to avoid the time and money required to comply with stock exchange regulations, the company could issue ________.
A) American Depository Receipts (ADRs)
B) Special Drawing Rights (SDRs)
C) equity shares
D) Gouda bonds

Question

Quizplus · Accepted Answer

ADRs are a way for foreign companies to raise capital in the US market without becoming listed on a local stock exchange. ADRs are financial instruments that represent ownership in shares of a non-US company and are traded on US exchanges. By issuing ADRs, Verandas International can avoid the cost and complexity of complying with US stock exchange regulations, while still accessing the US capital market.

Scenario: Verandas International Verandas International Is Expanding Its Operations in North America. the North