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.

---

Definitions:

Horizon Value

The estimated value of a company or investment at the end of a specified period, taking into account all future cash flows beyond that point.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, based on assigned weights.

Free Cash Flow

A financial metric that represents the amount of cash a company generates after accounting for capital expenditures used to maintain or expand its asset base.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.