Which of the Following Statements Is NOT True Regarding MNEs

question 51

Multiple Choice

Which of the following statements is NOT true regarding MNEs when compared to purely domestic firms?

• A) MNEs tend to rely more on short and intermediate term debt.
• B) MNEs have greater foreign exchange risk.
• C) MNEs have greater costs of asymmetric information.
• D) MNEs have higher agency costs.

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Definitions:

Corporate Respectability

The state or quality of being respected or esteemed in the corporate world, often achieved through ethical business practices and social responsibility.

Business Executives

Individuals who hold senior management roles within companies, tasked with making strategic decisions to guide the organization towards its goals.

White-Collar Criminals

Individuals who commit crimes in the context of their employment or financial activities, typically involving fraud, embezzlement, or insider trading.

Police Brutality

Excessive or unnecessary force used by police officers against civilians, often leading to violations of civil rights.