Which of the Following Statements Is Not True of MNCs

question 4

Multiple Choice

Which of the following statements is not true of MNCs?

• A) They grew rapidly first in Japan.
• B) Their operations extend beyond the boundaries of their home countries.
• C) They have one or more subsidiaries in host countries.
• D) There was a strong rise in MNCs from 1955-1970.

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Definitions:

Firm's Risk

The total risk associated with running a business, including both systematic and unsystematic risks.

Market Risk

The risk of losses in investments due to market variables such as price changes, interest rates, or currency exchange rates.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Debt-equity Ratio

The metric illustrating the proportionate investment of equity and debt in asset financing for a company.