Other Things Being Equal, the Financial Leverage of MNCs Will

question 58

Multiple Choice

Other things being equal, the financial leverage of MNCs will be higher if the governments of their home countries are ____ likely to rescue them (in the event of failure) , and if their home countries are ____ likely to experience a recession.

• A) more; more
• B) less; more
• C) less; less
• D) more; less

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Definitions:

Supplies Expense

An expense reported on the income statement that reflects the cost of supplies used during the reporting period.

Equipment

Tangible assets used in the operation of a business that have a useful life beyond a single reporting period.

Supplies

Items used in the operation of a business that are consumed or exhausted over time.

Accounts

Recordings within an accounting system that track financial transactions and their effects on specific assets, liabilities, equity, revenues, and expenses.