Thomassen’s chief financial officer thinks that the company may run in

QUESTION

Thomassen’s chief financial officer thinks that the company may run into unique issues in Brinmei because of significantly different financial practices that are standard there. Which of the following, if true, strengthens her case?

A) Brinmei has a longstanding free-trade policy with most other nations.
B) Brinmei does not have monetary currency in common with any other nation.
C) Brinmei has no national stock exchange.
D) Brinmei has a largely market-driven economy.
E) Brinmei’s official national religion has strict rules regulating business practices.

ANSWER

Answer: E
Explanation: E) Having religiously-based laws or other norms regulating business practices makes it likely that Brinmei has distinctive financial practices that are significantly different from those of the United States. Choices A and D weaken the case that Brinmei’s financial practices are significantly different from those of the United States. Choice B: Most nations, including the United States, have their own monetary currency, rather than currrency in common with other nations, so this does not indicate that financial practices will be significantly different in Brinmei. Many nations have no national stock exchange but do not have significantly different financial practices from those of the United States, so Choice C does not strengthen the CFO’s view.