An MNC May Deviate from Its Target Capital Structure in Each

question 19

True/False

An MNC may deviate from its target capital structure in each country where financing is obtained, yet still achieve its target capital structure on a consolidated basis.

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Definitions:

Decentralized Firms

Decentralized Firms are organizations that distribute decision-making powers and operational activities across various levels and departments rather than centralizing control in a single location or group.

Centralized Organizations

Organizations where decision-making authority is concentrated at the top levels of management.