Which of the Following Financing Tactics Would Most Likely Help

question 13

Multiple Choice

Which of the following financing tactics would most likely help an MNE avoid bankruptcy?

• A)integrating e-commerce opportunities with domestic sales in order to maintain a steady balance of income and expenditures
• B)agreeing to forward contracts with customers and hedging purchases and sales on future currency rates
• C)organizing the capital structure so that the amount of debt financing is twice the level of equity financing
• D)keeping the percentage of debt in the capital structure to a level that can be managed even during difficult business conditions

---

Definitions:

Royal Colonial Government

The governing authority in a colony directed by the monarch of the parent country, implementing policies and administration through colonial officials.

Bourbon Reforms

A series of political and economic measures implemented by the Spanish Crown in the 18th century to revitalize the economies of Spanish colonies and increase their revenue.

Colonial Empire

A group of territories acquired and governed by a foreign power, notable for historic instances of exploitation and cultural imposition.

Spain

A country in southwestern Europe known for its rich history, diverse culture, and significant contributions to art, exploration, and cuisine.