Which of the Following Financing Tactics Would Most Likely Help

question 58

Multiple Choice

Which of the following financing tactics would most likely help an MNE to avoid bankruptcy?

• A) integrating e-commerce opportunities with domestic sales in order to maintain a steady balance of income and expenditures
• B) agreeing to forward contracts with customers and hedging purchases and sales on future currency rates
• C) organizing the capital structure so that the amount of debt financing is twice the level of equity financing
• D) keeping the debt proportion of their capital structure to a level that can be managed even during difficult business conditions

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Definitions:

Pneumatic Brake Systems

Brake systems that utilize compressed air to generate the force applied to the brake pads or shoes, common in heavy-duty vehicles.

Compressibility of Air

A property of air that allows it to decrease in volume under pressure, playing a critical role in various pneumatic systems and applications.

6S/6M Highway Tractor ABS

Refers to an Anti-lock Braking System with 6 sensors and 6 modulators used on highway tractors to prevent wheel lockup during braking.

Accident Avoidance Electronics

Integrated systems in vehicles designed to prevent or reduce the severity of an accident through technologies like automatic braking, lane-keeping assist, and collision warnings.