In Theory, the MNE Should Support ________ Debt Ratios Than

question 45

Multiple Choice

In theory, the MNE should support ________ debt ratios than a purely domestic firm because their cash flows are ________.

• A) lower; more stable due to international diversification
• B) lower; less stable due to international diversification
• C) higher; more stable due to international diversification
• D) higher; less stable due to international diversification

---

Definitions:

Facilitation

The process of making something easier or less difficult to do or achieve.

Mediation

Mediation is a process where a neutral third party assists disputing parties in reaching a mutually acceptable agreement or resolution.

Taking A Side

The act of supporting one party or viewpoint over another in a dispute or conflict.

Mediation

A facilitated negotiation process wherein a neutral third party helps disputing sides find a mutually acceptable resolution.