Of the Following, Which Is NOT Considered to Be a Disadvantage

question 13

Multiple Choice

Of the following, which is NOT considered to be a disadvantage to MNEs of having a financial structure adhere to local debt norms?

• A)Why adhere to local standards if, as an MNE, the firm has important competitive advantages relating to capital structure?
• B)Adhering to local standards may push the MNE consolidated financial ratios out of the optimal range.
• C)A localized financial structure makes it difficult for management to compare operating results with those of local competitors.
• D)All of the above are noted as disadvantages to having a localized capital structure.

---

Definitions:

Liquid Asphalt

A form of asphalt used in construction and paving, known for its ability to create smooth, durable surfaces.

Hot Material, Tanker

A type of tanker truck designed to transport high temperature materials, such as asphalt or chemicals, safely.

Crankcase

A housing for the crankshaft in an internal combustion engine.

Multi-Purpose Gear Lube

A type of lubricant designed for use in various gear systems, helping to reduce friction and wear.