When Comparing Disclosure Practices of MNE Worldwide

question 21

Multiple Choice

When comparing disclosure practices of MNE worldwide,

• A) very few firms other than those in Anglo-Saxon countries provide a review of business.
• B) Europeans tend to disclose more information about employees than do U.S. firms.
• C) stock market pressures are not as important a source of influence on corporate review information as are employees and governments.
• D) none of the above.

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Definitions:

Defective Parts

Components of a product that fail to meet quality standards or are damaged, requiring repair or replacement.

Warranty Expense

The estimated cost related to the future servicing of products sold that is recognized as an expense by a company.

Extended Warranty

An extended warranty is an additional warranty covering the repair and maintenance of items beyond the standard warranty period, usually at an extra cost.

FICA Payroll Tax

Federal taxes in the United States that fund Social Security and Medicare, required to be withheld from employees' paychecks and also matched by employers.