Which of the Following Is a Common Concern Regarding the Operation

question 69

Multiple Choice

Which of the following is a common concern regarding the operation of a multinational enterprise?

• A) The existence of minimum wage laws in developing nations.
• B) The exploitation of workers.
• C) The inefficiency of the home country's capital market.
• D) The existence of a strong legal system in the countries in which the firm operates.

---

Definitions:

Financial Statements

Reports summarizing the financial performance, position, and cash flows of a business for a specific period, including balance sheet, income statement, and statement of cash flows.

Contra Accounts

Accounts used in accounting to reduce the value of a related account to derive its net balance; examples include accumulated depreciation.

Normal Balances

The side of an account (debit or credit) where increases to the account are recorded; assets and expenses typically have debit normal balances, while liabilities, equity, and revenue have credit normal balances.

Perpetual Inventory System

An inventory tracking system that updates item records in real-time as transactions occur, providing a constant current inventory level.