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.
-An investor group has approached Verandas International and wants it to issue American Depository Receipts (ADRs) because ________.
A) the currency conversion fees are low
B) the minimum purchase requirement is just 500 ADRs
C) ADRs appeal to mutual funds
D) they are superior to GDRs

Question

Quizplus · Accepted Answer

ADRs are often used as a way for international companies to attract investment from mutual funds and other institutional investors in the United States. While currency conversion fees and minimum purchase requirements may be factors in the decision to issue ADRs, the investor group's approach is likely driven by the potential appeal of ADRs to more investors. There is no context provided to suggest that ADRs are superior or preferable to GDRs in this scenario.

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