According to Your Text, Which of the Following Is Not

question 62

Multiple Choice

According to your text, which of the following is not a factor that increases an MNC's cost of capital?

• A) higher exposure to exchange rate risk.
• B) higher exposure to country risk.
• C) an increase in the risk-free interest rate.
• D) an increase in the size of the MNC.

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Definitions:

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

Business Philosophy

The underlying principles and values that guide the operations, decisions, and overall direction of a company.

Nonmanufacturing Processes

Operations or activities that are not involved in the physical creation of goods.

Applied Factory Overhead

The allocation of estimated overhead costs to individual units of production based on a predetermined rate.