Which of the Following Statements About Multinational Firms Is NOT

question 43

Multiple Choice

Which of the following statements about multinational firms is NOT true?

• A) A multinational corporation is a business firm that operates in more than one country but is headquartered or based in its home country.
• B) Multinational corporations are owned by domestic stockholders only.
• C) Multinational corporations may purchase raw materials from one country, obtain financing from a capital market in another country, and produce finished goods with labor and capital equipment from a third country.
• D) All of these

Understand the place of corporate social responsibility (CSR), sustainability, and environmentalism in business strategies.

Understand the concept of intelligence and its multiple dimensions.

Examine Howard Gardner's theory of multiple intelligences and its implications.

Analyze Robert Sternberg's triarchic theory of intelligence.

---

Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Coupon Rate

The annual interest rate paid by a bond's issuer to its bondholders, expressed as a percentage of the bond's face value.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which constitutes how a company finances its overall operations and growth.

Indifference EBIT

Indifference EBIT (Earnings Before Interest and Taxes) is the level of EBIT where a company is indifferent between different financial options or structures, as each would result in the same earnings.