Which of the Following Statements About Multinational Corporations (MNCs)is False

question 31

Multiple Choice

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

• A)MNCs are corporate organizations that operate on a global scale without significant ties to any one nation or region.
• B)MNCs are inherently unethical and always do harm in the countries in which they operate.
• C)MNCs are characterized by a global strategy of focusing on opportunities throughout the world.
• D)Some MNCs are so large and powerful that their revenues are greater than the gross domestic products of many countries.
• E)Because of their size and power,MNCs have been the subject of much criticism and the source of a number of ethical issues.

---

Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding production costs but including items like rent, utilities, and payroll.

Net Income

The total profit of a company after all expenses, including taxes, cost of goods sold, and operating expenses, have been deducted from total revenue.

Variable Costing

Another perspective: A costing methodology that treats only those costs that vary with production level as product costs, emphasizing the impact of fixed costs on profitability.

Special Order Decisions

Special order decisions involve determining whether a business should accept or decline a custom order that differs from normal sales, considering capacity and costing.