An Argument for an MNC to Have a Debt-Intensive Capital

question 45

Multiple Choice

An argument for an MNC to have a debt-intensive capital structure is that:

• A) it can reduce the MNC's exposure to exchange rate risk on earnings remitted by subsidiaries to the parent.
• B) it can reduce the chance of bankruptcy.
• C) it spreads the shareholder base.
• D) it forces subsidiaries to pay dividends to shareholders.

---

Definitions:

IDEO

An international design and consulting firm known for pioneering the concept of human-centered design and innovation.

Nurses

Professionals in healthcare who are trained to care for sick and injured patients, provide health advice and emotional support to patients and their families.

Observer-as-Participant

A research method where the observer is involved to a limited extent in the activities being observed, without becoming a full participant.

Neutral Stance

A position of impartiality or absence of bias, where no particular side, opinion, or prediction is favored.