Many MNCs Involved in Extractive/natural Resources Industries

question 20

Multiple Choice

Many MNCs involved in extractive/natural resources industries

• A)tend to directly own oil fields,mine deposits,and forests.
• B)tend to lease their oil fields,mine deposits,and forests.
• C)tend to partner with local firms,leveraging their intangible assets.
• D)none of the options

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Definitions:

Minimum Required Rate Of Return

The lowest return on investment that an investor is willing to accept for a particular investment, often considering the risk involved.

Net Operating Income

The total profit of a business after operating expenses have been deducted, but before interest and taxes.

Gross Margin

The difference between revenue and cost of goods sold (COGS), which reflects the profitability of a company's core activities excluding overhead costs.

Net Operating Income

The profit a company makes from its regular business operations, excluding deductions of interest and taxes.