An MNC's Cash Flows Are Likely to Be Less Volatile

question 27

Multiple Choice

An MNC's cash flows are likely to be less volatile if its percentage of foreign sales is ____ and the number of foreign countries it sells products to is ____.

• A) high; large
• B) high; small
• C) low; small
• D) high; large.

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Definitions:

Probability Distribution

A function in mathematics that determines the chances of different outcomes for a given experiment.

Variance

A measure of the dispersion or spread of a set of values, calculated as the average of the squared differences from the Mean.

Standard Deviation

An indicator that quantifies the extent of spread or diversity among values in a dataset, showing how far the values diverge from the average.

Retries

The number of attempts to perform an action after initial failures.