MNCs Have Invested in China

question 64

Multiple Choice

MNCs have invested in China

• A)by lower material costs.
• B)by lower labor costs.
• C)by a desire to preempt the entry of rivals into China's potentially huge market.
• D)all of the above

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities; it represents the ownership interest of the shareholders or owner in the company.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity.

Owner's Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership's claim on assets.

Liabilities

Financial obligations or debts that a company or an individual owes to others.