Why Might an MNC's Working Capital Situation Be More Complex

question 26

Multiple Choice

Why might an MNC's working capital situation be more complex than a domestic firm's working capital situation?

• A)An MNC's current assets and current liabilities are consolidated across its subsidiaries,which means that there are a variety of risks involved in those assets and liabilities.
• B)An MNC is usually much larger than domestic firms,so MNCs have more assets and more liabilities and more need for working capital.
• C)An MNC has more complex financing arrangements than domestic firms.
• D)MNCs are subject to more regulation than domestic firms.

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Definitions:

Myofibrils

Long, filamentous organelles found in muscle cells that are crucial for muscle contraction and composed of sarcomeres.

Sarcomere

The basic contractile unit of muscle fiber, consisting of actin and myosin filaments between two Z lines.

Z Disk

Delicate, membranelike structure found at each end of a sarcomere to which actin myofilaments attach.

T Tubule

T Tubules, or transverse tubules, are extensions of the cell membrane that penetrate into the center of skeletal and cardiac muscle cells, playing a crucial role in muscle contraction.