In Theory, the MNE Should Support ________ Debt Ratios Than

question 45

Multiple Choice

In theory, the MNE should support ________ debt ratios than a purely domestic firm because their cash flows are ________.

• A) lower; more stable due to international diversification
• B) lower; less stable due to international diversification
• C) higher; more stable due to international diversification
• D) higher; less stable due to international diversification

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Definitions:

Liberties of the Individual

The rights and freedoms that belong to each person, which allow for the expression of self and protection from external control or interference.

Natural Rights

Fundamental rights that every individual is born with and cannot be taken away, such as life, liberty, and the pursuit of happiness.

John Locke

A 17th-century English philosopher known for his work on political philosophy, epistemology, and education.

Referenda

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