Which of the Following Is True About Multinational Companies

question 31

Multiple Choice

Which of the following is true about multinational companies?

• A)They open facilities in only one or few countries to manufacture and market their products.
• B)They attempt to develop identical products distributed worldwide.
• C)Large part of their revenues comes from exports and they do not shift production from home country.
• D)They compete on state-of-the-art, top-quality products and services.
• E)They increasingly emphasize flexibility and mass customization of products to meet the needs of particular clients.

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Definitions:

Book Value

The net value of a company's assets, determined by subtracting its liabilities from its total assets, often used to assess the company's worth.

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential for dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.