Which of the Following Best Describes a Transnational Corporation

question 54

Multiple Choice

Which of the following best describes a transnational corporation?

• A) A company that exports its products to several countries and regions of the world
• B) An international business consisting of a foreign branch owned partly by the home office and partly by an entity in the host country
• C) A firm with assembly and production facilities in several countries and regions of the world
• D) A highly decentralized firm that has operations in many countries and owes very little allegiance to any country

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Definitions:

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total number of units produced.

Fixed Cost

refers to a business expense that remains constant regardless of the level of production or sales, such as rent or salaries.

Total Cost

The aggregate of every expense related to the creation of services or goods, taking into account both constant and fluctuating costs.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced, indicating the average cost per unit.