Which of the Following Is Not True Regarding Host Government

question 31

Multiple Choice

Which of the following is not true regarding host government attitudes towards direct foreign investment (DFI) ?

• A) Host governments may offer incentives to MNCs in the form of subsidies in certain circumstances.
• B) Host governments generally perceive DFI as a remedy for their national problems.
• C) The ability of a host government to attract DFI is dependent on the country's markets and resources.
• D) Some types of DFI will be more attractive to some governments than to others.
• E) All of the above are true.

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Definitions:

Production Budget

An estimate of the total units to be produced in a given period, factoring in expected sales and inventory requirements.

Cash Budget

A financial plan that estimates incoming and outgoing cash flows over a specific period to ensure liquidity and solvency.

Disbursements

Payments made by a business, often involving cash outflows for operating expenses, purchasing assets, or repaying debt.

Minimum Cash Balance

The lowest amount of cash a company seeks to maintain in its accounts to ensure liquidity and cover short-term obligations.