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What distinguishes an MNE from an SME? In a short essay, describe the major differences between the two types of firms.
Cost of Capital
The minimum profit rate a business needs to generate from its investments to keep its market value stable and draw in financing.
Cash Flows
The cumulative sum of funds moving in and out of a company, particularly influencing its ability to cover short-term obligations.
Break-even Quantity
The number of units that must be sold to cover the total costs of production, resulting in neither profit nor loss.
Fixed Costs
Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance, essential for budgeting and financial planning.
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