An MNC's "Global" Capital Structure Is

question 6

Multiple Choice

An MNC's "global" capital structure is:

• A) the MNC's capital structure in the United States.
• B) the MNC's capital structure relative to the structures of competitors across all countries.
• C) the MNC's capital structure where it has its largest subsidiary.
• D) the combination of the capital structures of the parent and all of its subsidiaries.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and shareholders' equity.

Common Stock Split

A corporate action to divide its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in a company.

Net Income

The total earnings or profit of a company after deducting all expenses, taxes, and losses from the total revenue.