What Form of Organization Enables a Multinational Enterprise to Retain

question 36

Multiple Choice

What form of organization enables a multinational enterprise to retain control and authority over all phases of operation?

• A)Direct export sales.
• B)Wholly owned subsidiaries.
• C)Joint ventures.
• D)None of the above.

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Definitions:

Interest Rate Cap

A financial derivative contract that limits the maximum interest rate a borrower has to pay on a variable-rate loan.

Futures Contracts

Standardized agreements to buy or sell a commodity or financial asset at a future date and price.

Hedge

An investment strategy used to reduce risk by taking positions that offset potential losses in other investments.

Strike Price

The strike price is the price at which the holder of an option contract has the right to buy (for a call option) or sell (for a put option) the underlying asset or security upon exercise of the option.