What Is Meant by the Term "Thin Capitalization

question 35

Multiple Choice

What is meant by the term "thin capitalization?"

• A) Undervaluing foreign investments
• B) Using as little debt financing as a country will allow
• C) Minimizing the amount of equity capital used to fund foreign operations
• D) Creating transparency in the methods used to fund foreign operations

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Definitions:

Decision-Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Free Agents

Individuals who provide their services or work independently, often without long-term commitments to any singular employer.

Short-Term Talent

Refers to individuals or workforce hired or utilized for immediate or temporary projects and goals.

Independent Workers

Individuals who perform tasks or projects with a high degree of autonomy, often outside of a traditional employer-employee relationship.