MNCs Commonly Consider Acquiring an Existing Foreign Operation Because the Cost

question 50

True/False

MNCs commonly consider acquiring an existing foreign operation because the cost is less expensive than establishing a new subsidiary of the same size.

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Definitions:

Profit Generated

The total amount of financial gain made by a business after all expenses have been subtracted from total sales.

Controllable Margin

The portion of profit or margin over which management has control, often excluding fixed costs.

Average Assets

A financial metric calculated by taking the average of a company's total assets at the beginning and end of an accounting period, used to assess performance efficiency.

ROI

Return on Investment, a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.