The Interests of Multinational Corporations' Shareholders May Be Best Served

question 31

Multiple Choice

The interests of multinational corporations' shareholders may be best served when there is

• A) a uniform compensation plan for all corporate executives, U.S. and foreign alike.
• B) executive compensation that is primarily based on long-term performance.
• C) elevation of foreign executive compensation to U.S. levels.
• D) a variety of compensation plans for executives of foreign subsidiaries.

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Definitions:

Investment in Bonds

The purchase of bonds with the aim to earn interest income over time and potentially benefit from appreciation in bond value.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position by detailing its assets, liabilities, and equity at a specific point in time.

Lower of Cost

A principle that dictates inventory and other assets are recorded at the lesser of their historical cost or market value.

Generally Accepted Accounting Principles

A set of widely adhered to accounting principles and standards used in financial reporting.