Which of the Following Ratios Is Used in the Calculation

question 16

Multiple Choice

Which of the following ratios is used in the calculation of the multinationality index (MNI) ?

• A) Foreign working capital to total working capital
• B) Foreign cash to total cash
• C) Foreign employment to total employment
• D) Foreign loans to total loans

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Definitions:

Capital

In finance, it refers to the financial assets or resources that individuals or enterprises use for investing, producing goods, or services.

Real Assets

Physical or tangible assets that have intrinsic value due to their substance and properties, such as real estate, commodities, or natural resources.

Buying a Bond

The act of purchasing a bond, a debt security issued by entities such as governments or corporations, where the issuer owes the holders a debt and is obliged to pay interest.

Debt Relationship

The relationship between a borrower and lender, defined by the terms under which money or goods are borrowed.