Capital Structures of Foreign Affiliates Should

question 32

Multiple Choice

Capital structures of foreign affiliates should

• A)conform to the standards set by local companies
• B)vary in order to take advantage of opportunities to reduce overall risk and financing costs
• C)be very similar to the parent's capital structure because this is what determines the firm's risk profile
• D)conform to the standards established by other foreign units

---

Definitions:

France

A country in Western Europe known for its rich history, cultural influence, and significant roles in both European and world affairs from the medieval period to the modern day.

Giovanni Giolitti

An influential Italian statesman and Prime Minister, known for his leadership in the early 20th century and efforts to balance the interests of various social groups.

Italian Prime Minister

The head of government in Italy, responsible for leading the country's executive branch and implementing national policies and laws.

Motto

A short phrase or sentence that serves as a guiding principle or expresses the beliefs or ideals of an individual, family, or institution.