Which Term Refers to a Firm with Highly Decentralized Operations

question 101

Multiple Choice

Which term refers to a firm with highly decentralized operations in many countries and weak ties to any single country?

• A) Subsidiary
• B) Joint venture
• C) Multinational corporation
• D) Transnational corporation

---

Definitions:

Cash Flow Hedge

A type of financial hedge that protects against exposure to cash flow risk or uncertainty from variable cash inflows or outflows.

Spot Rate

The existing rate at which a certain currency is available for immediate purchase or sale.

Forward Contract

A financial derivative instrument between two parties to buy or sell an asset at a specified future time at a price agreed upon today.

Settlement Date

The date on which a trade is finalized and the buyer must make payment and the seller deliver the asset.