Vertical Integration Occurs If a Parent Multinational Corporation Establishes Foreign

question 3

True/False

Vertical integration occurs if a parent multinational corporation establishes foreign subsidiaries to produce intermediate goods or inputs that go into the production of a finished good.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match its market value.

Stated Value

An arbitrary value assigned to no-par value stock by the board of directors of a company, used for accounting purposes.

Date Of Record

The date of record is the specific date set by a company on which the shareholders must be on the company's books in order to receive a declared dividend.

Cash Dividend

The allocation of earnings in cash form by a company to its stockholders.