Question : Case Study: UVW Industries - Sustainable Financing for Green Initiatives
UVW Industries is a company committed to sustainable practices and is undertaking environmentally friendly initiatives. The company is exploring various sources of business finance to support its green projects.
Questions : Different Sources of Finance
What are GDRs and ADRs, which UVW Industries is considering as potential sources of finance?
Option 1: Employee performance metrics
Option 2: International financial regulations
Option 3: International financial instruments
Option 4: Strategies for reducing operational costs
Correct Answer: International financial instruments
Solution : The correct answer is (c) International financial instruments
GDRs and ADRs are both financial instruments that represent shares in foreign companies and are traded on international stock exchanges. They allow companies like UVW Industries to raise capital from international investors by listing their shares in the form of GDRs or ADRs on foreign exchanges. GDRs are typically traded in European markets and represent shares in a company outside of Europe, while ADRs are traded in the United States and represent shares in non-U.S. companies.
