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.

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