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.

---

Definitions:

Cultural Collapse

Cultural collapse occurs when a society loses its identity, values, and critical social structure, often as a result of catastrophic events, external conquest, or internal decay.

Incomparable Valley

Refers to an exceptionally fertile or picturesque valley renowned for its beauty or productivity, though not specific to one location can be used poetically to describe unique valleys.

Yosemite Valley

A renowned glacial valley in Yosemite National Park in the Western United States, famed for its stunning natural beauty and outdoor recreation opportunities.

Death Valley

A desert valley located in Eastern California, within the Mojave Desert, noted as one of the hottest places on Earth.