Corporations Are Becoming Multinational Not Only in the Scope of Their

question 83

Multiple Choice

Corporations are becoming multinational not only in the scope of their business activities but also in their capital structure

• A)by raising funds from domestic as well as government sources.
• B)by raising funds from foreign as well as domestic sources.
• C)this trend reflects not only a conscious effort on the part of firms to raise the cost of capital by international sourcing of funds but also the ongoing liberalization and deregulation of international financial markets that make them accessible for many firms.
• D)both b and c

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Definitions:

Opportunity Costs

The loss of potential gain from other alternatives when one particular option is chosen over them.

Project Analysis

The process of evaluating the potential risks and returns associated with investing in a particular project.

Market Value

The total value of a company or asset in the financial market based on the current price at which it can be bought or sold.

Idle

The state of an asset or resource not being in use, contributing no output or value during a certain period.