The Effect of the Risks Faced by MNCs Is To

question 16

Multiple Choice

The effect of the risks faced by MNCs is to:

• A)decrease the firm's profit potential.
• B)increase the need for new sources of foreign capital.
• C)decrease the firm's ability to develop a strategy for addressing risks.
• D)increase the volatility of cash flow.

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Definitions:

Tax Free

Refers to financial income or accounts that are not subject to taxation by the government, often used to encourage specific investments or savings.

Variable Annuity

A type of annuity plan that allows the contract owner to choose investments which then dictate the fluctuation of the payout amounts.

Life Expectancy

Life Expectancy is the statistical measure that reflects the average period a person is expected to live, based on demographic factors.

Governance

Governance encompasses all of the processes of governing, whether undertaken by a government, market, or network, over a social system (family, tribe, formal or informal organization, a territory or across territories) and whether through the laws, norms, power or language of an organized society.