Which of the Following Statements Is Most Likely True Regarding

question 76

Multiple Choice

Which of the following statements is most likely true regarding relationships between MNEs and stakeholders?

• A)An MNE typically serves all stakeholder groups equally at any given time.
• B)No individual stakeholder group is powerful enough to cause the demise of an MNE.
• C)All stakeholders of an MNE have the same short-term and long-term goals and interests.
• D)The inability to adequately meet the long-term needs of all stakeholders increases the probability of an MNE failing.

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Definitions:

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Internal Rate

The rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Payback Period

The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates.

Investment

Allocation of capital or resources to assets with the expectation of generating profit or income.