Which of the Following Is NOT a Motive for Firms

question 54

Multiple Choice

Which of the following is NOT a motive for firms to become multinational?

• A) to take advantage of potential opportunities to expand the market for the firm's products.
• B) to secure needed resources.
• C) to avoid high domestic taxation on corporate income.
• D) increasing universal product demand.

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Definitions:

Payback Period

The time required for an investment to generate cash flows sufficient to recover the initial investment cost.

Scrap Value

The estimated resale value of an asset at the end of its useful life, also known as salvage value.

Incremental Annual

Incremental annual refers to the year-over-year changes or additional amounts in revenue, cost, or other financial metrics.

Internal Rate

Typically refers to the internal rate of return (IRR), which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.