After Considering the Long-Term Implications of the Project Such as Political

question 20

Multiple Choice

After considering the long-term implications of the project such as political risk and foreign tax regulations,a multinational firm called Company X decides to purchase a foreign company to merge with its foreign subsidiary.This is an example of:

• A) Cash management
• B) Projection analysis
• C) Capital budgeting
• D) Decentralized management

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Definitions:

Administrative Costs

These are expenses associated with the day-to-day operations of a business or organization, including clerical, administrative, and managerial activities.

Tax

An obligatory fiscal payment or alternative form of assessment charged by a governmental body on taxpayers, intended to support governmental budgeting and diverse public spending.

Quota

A governmental restriction on the quantity of a specific good that can be imported or exported within a given time frame, used to regulate trade.

Excise Tax

A tax on the production, sale, or consumption of a particular good or service, often levied by the government.