Which of the Following Statements Is True of Multinational Corporations

question 27

Multiple Choice

Which of the following statements is true of multinational corporations (MNCs) ?

• A)MNCs are government organizations.
• B)MNCs have assets and operations in only the home country.
• C)MNCs deliver products and services across national borders.
• D)MNCs are essentially decentralized.

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Definitions:

Expected Value Analysis

A form of analysis that assigns likelihoods (probabilities) to various inputs, thus incorporating uncertainty directly into the output (answer).

Probabilities

A measure representing the likelihood or chance of certain events occurring, expressed as a number between 0 and 1.

Uncertainty

A lack of definite knowledge or predictability about outcomes, often factored into decision-making and risk assessments.

Present Value Index

An index computed by dividing the total present value of the net cash flow to be received from a proposed capital investment by the amount to be invested.