GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investor purchases part of a company through stocks; no real control of company
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when a company sells goods and services at a lower price than its competitors and still gains larger profits
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when a business creates the efficient production of a specific product or service
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business which operates internationally
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helps companies determine how to gain a competitive edge and position themselves so customers buy from them, and only them
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Detailed explanation-1: -A stock market portfolio is an investor’s collection of stocks, funds, and other market-traded securities. In general, investment portfolios often include some cash and bond investments.
Detailed explanation-2: -▪ Portfolio investment is defined as cross-border transactions. and positions involving equity or debt securities, other than those included in direct investment or reserve assets (BPM6, (, para 6.54). ▪ The characteristic feature of securities is their negotiability.
Detailed explanation-3: -A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio.
Detailed explanation-4: -Portfolio investments are passive investments, as they do not entail active management or control of the issuing company. The foreign investors have a relatively short-term interest in the ownership of these passive investments such as bonds and stocks.