Which of the Following Statements Is True of Multinational Corporations

question 28

Multiple Choice

Which of the following statements is true of multinational corporations (MNCs) ?

• A)MNCs are government organizations.
• B)MNCs have assets and operations only in their home country.
• C)MNCs deliver products and services across national borders.
• D)MNCs are essentially decentralized.

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Definitions:

Applicable Tax Rate

The applicable tax rate is the percentage at which an individual or corporation is taxed, varying depending on income, profit, or transaction values.

Incremental Cash Flows

The additional cash flow a company generates from a particular investment or project, compared to not undertaking the project.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

MACRS

MACRS, or Modified Accelerated Cost Recovery System, is a method of depreciation in the United States that allows for faster asset expense recovery over time for tax purposes.