Which of the Following Is Not Directly Considered in the Decision

question 24

Multiple Choice

Which of the following is not directly considered in the decision by a U.S.-based MNC to divest a subsidiary?

• A)the required rate of return on the subsidiary
• B)forecasted exchange rates of the subsidiary's currency relative to the dollar
• C)the initial outlay on the project
• D)the possible selling price of the project

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Definitions:

Binding Contract

An agreement that is legally enforceable in a court of law, requiring all parties to fulfill their obligations as outlined.

Written Acceptance

Formal acknowledgment in writing that an offer or proposal has been received and agreed upon.

Verbal Offer

An offer made orally rather than in written form, often preliminary and less formal.

Legally Binding

A contract or agreement that is enforceable by law, where parties are obligated to fulfill the terms.