Which of the Following Statements Is True Regarding Multi-National Corporations

question 51

Multiple Choice

Which of the following statements is true regarding multi-national corporations?

• A) Exxon Mobil earns the majority of its profits from its overseas operations.
• B) Google currently derives the majority of its earnings from outside the U.S.
• C) Wal-Mart earns the majority of its profits from outside the U.S.
• D) Coca-Cola has no overseas operations and no earnings outside the U.S.

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Definitions:

Business Organizations

Entities formed to conduct commercial activities, ranging from sole proprietorships to corporations with various operational and legal structures.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and represent the primary components of a finished product.

Finished Goods

Refers to products that have completed the manufacturing process but have not yet been sold or distributed to end customers.

Cost

The value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore.