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:

CGT

Capital Gains Tax, a tax on the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale.

Selling New Common Stock

The process whereby a company issues and sells additional shares of its common stock to investors to raise capital.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and it can also be viewed as the risk-free rate of return plus a risk premium.

Capital Budgeting Projects

Capital budgeting projects are long-term investment decisions made by companies to invest in assets and projects for future growth and profitability.