When an MNC Acquires a Target and Knows That It

question 63

True/False

When an MNC acquires a target and knows that it will be able to sell the acquisition at any time during the next three years at a specific price, the MNC has acquired a put option on real assets.

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Definitions:

Influx

Refers to the arrival or entry of large numbers of people or amounts of goods into a place.

Foreign Goods

Products or services produced in one country and sold in another.

Capital Account

An account of a country’s transfer of capital to or from other countries.

Public Land

Land owned by the government for public use or preservation.