​An MNC Has Fixed Assets in Europe That It Expects

question 47

Multiple Choice

​An MNC has fixed assets in Europe that it expects to sell in the distant future. In order to hedge the sale of these assets in the distant future, the MNC could create a(n) ____ that ____ the expected value of the assets in the future.

• A) ​asset; matches
• B) ​asset; exceeds
• C) ​liability; matches
• D) ​liability; is less than

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Definitions:

Required Rate of Return

The minimum expected return by investors or lenders for providing capital, influenced by the investment's risk level.

Operations

The day-to-day activities involved in running a business that lead to the production of goods and provision of services.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.

Electric Power Plant

A facility that generates electricity through various energy sources like coal, natural gas, nuclear, solar, or wind power.