Which of the Following Financing Tactics Would Most Likely Help

question 58

Multiple Choice

Which of the following financing tactics would most likely help an MNE to avoid bankruptcy?

• A) integrating e-commerce opportunities with domestic sales in order to maintain a steady balance of income and expenditures
• B) agreeing to forward contracts with customers and hedging purchases and sales on future currency rates
• C) organizing the capital structure so that the amount of debt financing is twice the level of equity financing
• D) keeping the debt proportion of their capital structure to a level that can be managed even during difficult business conditions

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Definitions:

Social Constructionism

A theory in sociology and philosophy which suggests that many aspects of the world, including knowledge, are not inherent in reality but are constructed by society.

Differential Association

A theory in sociology that proposes individuals learn criminal behavior through their associations with others who engage in crime.

Consensus Crimes

Criminal acts that are universally condemned by society and considered inherently wrong, such as murder and rape.

Legal Conflict

A disagreement or dispute between parties that requires the intervention of a court of law to resolve.