Which of the Following Statements Is NOT True Regarding MNEs

question 51

Multiple Choice

Which of the following statements is NOT true regarding MNEs when compared to purely domestic firms?

• A) MNEs tend to rely more on short and intermediate term debt.
• B) MNEs have greater foreign exchange risk.
• C) MNEs have greater costs of asymmetric information.
• D) MNEs have higher agency costs.

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Definitions:

Personal Moral Code

A set of principles or ethics that an individual personally follows, guiding their behavior and decisions based on their beliefs about what is right and wrong.

Care Perspective

An ethical viewpoint emphasizing caring for others and maintaining relationships as a moral compass.

Carol Gilligan

An American feminist, ethicist, and psychologist best known for her work on moral development, especially in women.

Moral Reasoning

The process by which individuals think through ethical issues and come to a conclusion or judgment.