The Goal of a Multinational Corporation MNC Is

question 10

Multiple Choice

The goal of a multinational corporation MNC is

• A) The minimization of taxes remitted from foreign subsidiaries.
• B) The establishment of subsidiaries in any country where operations would provide a return above the cost of capital, even if better projects are available domestically.
• C) The maximization of shareholder wealth.
• D) The maximization of social benefits to the host country through knowledge spillover effects.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends, but last in priority for assets and income.

Cash Dividends

Distributions of a corporation's earnings to shareholders as a return on their investment, typically in the form of cash.

Asset Balances

The values of all the assets that a company has listed on its balance sheet, these values are assessed at the end of a reporting period.

Net Income

The profit a company has after deducting all its expenses from its total revenues, also known as the bottom line.