Which of the Following Is Least Likely to Influence an MNC's

question 66

Multiple Choice

Which of the following is least likely to influence an MNC's capital structure?

• A) The stability of MNC's cash flows
• B) The MNC's credit risk
• C) The MNC's access to earnings
• D) The MNC's decision to invest excess cash in a Treasury bill rather than in a bank

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Definitions:

Margin

The difference between the selling price of a product or service and its production or acquisition cost, often expressed as a percentage.

Return on Investment

A measure of the profitability of an investment expressed as a percentage of the initial amount invested.

Turnover

The rate at which inventory or assets are replaced over a given period, or alternatively, the total amount of a company's sales or revenues.

Net Operating Income

The total profit of a company after operating expenses are subtracted, but before taxes and interest are deducted.