The Goal of a Multinational Corporation (MNC) Is the Maximization

question 13

True/False

The goal of a multinational corporation (MNC) is the maximization of shareholder wealth.

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Definitions:

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit. The pool of funds is invested on the worker's behalf, and the earnings on the investments generate income to the worker upon retirement.

Risk Aversion

A trait or behavior exhibited by investors who prefer to avoid risk, choosing safer investments over riskier ones.

Liquidity

Liquidity describes the ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Time Horizon

The length of time over which an investment is expected to be held before it is liquidated.