Which of the following is a reason for analyzing the financial statements of foreign corporations?
A)making credit decisions about foreign customers
B)evaluating international business combinations
C)diversifying an investment portfolio
D)All of the above are reasons for analyzing foreign financial statements.

Question

Quizplus · Accepted Answer

All of the options listed (making credit decisions, evaluating international business combinations, and diversifying an investment portfolio) are valid reasons for analyzing the financial statements of foreign corporations. It is important to have a comprehensive understanding of a company's financial health before making any decisions about credit or investments, and this holds true whether the company is domestic or foreign. Additionally, when considering international business combinations, an analysis of the target company's financial statements can help inform negotiations and due diligence efforts.

Which of the Following Is a Reason for Analyzing the Financial