In General, MNCs Probably Prefer to Use ____ Foreign Debt

question 3

Multiple Choice

In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are subject to ____ local interest rates.

• A) more; low
• B) more; high
• C) less; low
• D) B and C
• E) none of the above

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Definitions:

Mistake Of Fact

A mistake of fact refers to a misunderstanding or incorrect belief about a fact relevant to a contract or a legal proceeding, affecting the decisions made by the parties involved.

Contract

A binding pact between parties that has legal force and can be upheld in court.

Accept

To agree to receive or undertake something offered.

Offer

A proposal by one party to another to enter into a legal agreement, constituting one of the essential elements of a contract.