Expropriation of plant and equipment without compensation is an example of financial risk from direct foreign investments

Which of the following is NOT an advantage of trade credit?

A) Trade credit is very flexible. B) The amount of extended credit expands and contracts with the needs of the firm. C) The cost of forgoing the discount is less than the prime rate. D) Generally no formal agreements are involved in the extension of trade credit.

Suppose that you are interested in buying a home, but are unsure of how much you can afford. What is the best way to determine your prospects for obtaining a mortgage?

A) Calculate your debt limit ratio. B) Figure the 28/36 rule. C) Determine what your mortgage payment will be. D) Determine what your income taxes will be. E) Both B and C are correct answers.