Unilever Decides When to Centralize and When to Decentralize Depending

question 69

Multiple Choice

Unilever decides when to centralize and when to decentralize depending on the products and the local markets.This is an example of a(n) ________ company.

• A) transnational
• B) home-replication
• C) multidomestic
• D) national
• E) import

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Definitions:

Noncallable Bond

A type of bond that cannot be redeemed by the issuer before its maturity date, thus offering investors protection against early repayment risks.

Annual Coupon

The yearly interest payment made to bondholders, expressed as a percentage of the bond's face value.

Bond-Yield-Plus-Risk-Premium

A method of estimating the cost of equity by adding a risk premium to the observed yield of a company’s long-term debt.

WACC

An assessment of a firm's cost of capital, where each category of capital is proportionally weighted to calculate the average cost.