Multinat Is a Large Corporate with Its Headquarters in Asia

question 1

Multiple Choice

Multinat is a large corporate with its headquarters in Asia. It wants to open new divisions in Africa and Australia. The company wants to ensure that the new divisions follow the same policies and guidelines as the parent company. It is evident from the scenario above that Multinat wants to:

• A) incorporate local adaptation.
• B) establish global consistency.
• C) create franchises.
• D) form strategic alliances.

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Definitions:

Price-Earnings

A ratio used to evaluate a company's stock price relative to its per-share earnings, indicating the value that investors put on a company's earning power.

Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue—the higher the number, the better the performance.

Total Assets

The aggregate of all resources owned by a company, valued in monetary terms, including both current and non-current assets.