Generally, MNCs with Less Foreign Costs Than Foreign Revenues Will

question 9

Multiple Choice

Generally, MNCs with less foreign costs than foreign revenues will be ____ affected by a ____ foreign currency.

• A) favorably; stronger
• B) not; stronger
• C) favorably; weaker
• D) not; weaker
• E) B and D

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Definitions:

Dividend Policy

A company's strategy or guideline determining the amount of profits paid out to shareholders as dividends versus being reinvested in the business.

Tax Considerations

Tax considerations involve understanding how taxes affect investment and financial decisions, impacting the overall cost or benefits of these decisions.

Restrictive Covenants

Clauses in contracts that limit certain actions of the parties involved, often used in employment contracts and loan agreements to protect business interests.

Dividend Policy

A company's strategy or guideline on whether to retain its profits or distribute them to shareholders in the form of dividends, and at what frequency.