If an MNC Exports to a Country, Then Establishes a Subsidiary

question 40

Multiple Choice

If an MNC exports to a country, then establishes a subsidiary to produce and sell the same product in the country, then cash flows from prevailing operations would likely be ____ affected by the project. If an MNC establishes a foreign manufacturing subsidiary that buys components from the parent, the cash flows from prevailing operations would likely be ____ affected by the project.

• A) adversely; adversely
• B) favorably; adversely
• C) favorably; favorably
• D) adversely; favorably

Understand the differences in budgeting for service enterprises, merchandisers, and manufacturers.

Recognize the role and importance of the budget committee in the budgeting process.

Understand the concept of maintaining a minimum cash balance and its impact on financing decisions.

Understand the differences between Keynesian and classical economic theories.

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Definitions:

Work Environment

The physical and psychological conditions under which employees operate, including the office layout, company culture, and work-life balance.

Trainee Readiness

The state of being prepared and adequately equipped with the necessary skills and knowledge for training.

Trainee Capacity

The ability or potential a trainee has to learn, absorb, and apply new skills or knowledge acquired through training programs.

Trainee Motivation

The drive or enthusiasm of trainees or learners to engage in and complete their training programs.