Which of the Following Is a Common Operational Financial Objective

question 24

Multiple Choice

Which of the following is a common operational financial objective for MNEs?

• A) maximization of consolidated after-tax income
• B) maximization of interest expense
• C) minimization of revenues from other countries
• D) minimization of total assets held in foreign locations

Understand the impact of tariffs and quotas on domestic prices and production.

Analyze the effects of protectionism on an economy, including temporary protection for infant industries.

Evaluate the relationship between trade policies and their impact on international trade volumes (imports and exports).

Understand the arguments for and against protectionism, including economic efficiency and consumer impact.

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Definitions:

Implied Agency

A relationship formed by the actions of the parties that indicates an agency relationship, even without a formal agreement.

Apparent Agency

An agency relationship created by operation of law when one party, by her actions, causes a third party to believe someone is her agent even though that person actually has no authority to act as her agent. Also called agency by estoppel.

Ratification Agency

The process by which a principal approves and accepts the acts of their agent that were done without proper authority or beyond the scope of their authority.

Implied Authority

Power not explicitly granted to an agent but necessary to carry out the agent's duties effectively.