Which of the Following Statements Holds True for Transnational Financing

question 61

Multiple Choice

Which of the following statements holds true for transnational financing?

• A)It refers to the process of financing major projects such as plant expansion in different countries, entry into new countries, or research and development in new countries.
• B)It refers to investing capital in foreign markets.
• C)It refers to the process and a set of procedures used to estimate the economic value of an owner's interest in a transnational business.
• D)It refers to seeking capital from foreign sources.
• E)It refers to a technique that companies use to reduce the costs of cross-border payments between subsidiaries.

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Definitions:

Account Payable

Obligations or debts a company owes to suppliers or creditors for goods or services received that have not yet been paid for.

Increases Liabilities

Situations or transactions that result in a rise in the claims against a company’s assets.

Decreases Assets

Refers to any operation or transaction that results in a reduction of the value of assets owned by a business.

Account Receivable

Money owed to a company by customers who have purchased goods or services on credit.