Which of the following is true of corporations that operate in several different countries? a. Uniformity of tax-laws across different nations result in proper coordination and control of subsidiaries. b. Cash flows in various parts of a multinational corporate system are denominated in one currency. c. A nation may expropriate the assets of multinational corporations without compensation. d. Differences in legal systems of host nations make it easy for executives trained in one country to operate effectively in another. e. Multinational corporations have the advantage of uniform attitudes toward risk taking from one country to the next.

Answers

Answer 1

Answer:

Answer: Option C

Explanation: A company operating in countries other than its home country is called multinational corporations. These entities operate their business in several different countries with the objective of profit maximization.

These entities control their business in foreign countries from their head quarters in their home country. Thus, in case the company did something illegal or unethical then the government can expropriate their assets without any compensation.

Thus, the correct option is C.

Related Questions

Which of the following reflects diseconomies of scale? A. Marginal product decreases as output increases B. Short-run marginal cost increases as output increases C. Long-Run marginal cost increases as output increases D. Short-run average cost increases as output increases E. As output doubles, long run total cost more than doubles
Best Brands Appliance Mart is getting ready for its annual Labor Day sale. There are two Best Brands stores, one in midtown Manhattan and another in Amityville. Merchandise is stored in two warehouses, one in Brooklyn and one in Baldwin. From experience in past years, the owners know the big mover during the sale is tablets. The Manhattan store needs 500, while the Amityville store will require 400. Each warehouse has 600 tablets in stock. It costs $1 and $2 to ship a tablet from Brooklyn to Manhattan and to Amityville, and $2 and $4 to ship one from Baldwin to Manhattan and Amityville. What is the best shipping strategy for getting the tablets from the warehouses into the stores to minimize the shipping cost?
Read the following descriptions and identify the type of risk or term being described:a. This type of risk relates to fluctuations in exchange rates. b. This type of risk is inherent in a firmâs operations. A standard measure of the risk per unit of return. This can be used to reduce the stand-alone risk of an investment by combining it with other investments in a portfolio.c. A standard measure of the risk per unit of return d. This type of risk relates to fluctuations in exchange rates
Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this information: a. Sales, per the cash register tapes, of $112,000, plus one sale on credit (a special situation) of $3,100. b. With the help of a friend (who majored in accounting), you determine that all of the goods sold during January cost $48,000 to purchase. c. During the month, according to the checkbook, you paid $42,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $1,000 monthly utilities for January on the store and fixtures. Required: On the basis of the data given (disregard income taxes), what was the amount of net income for January?. (Hint: A convenient form to use has the following major side captions: Revenue from Sales, Expenses, and the difference—Net Income.)
Suppose the demand equation is: Upper Q equals 120 minus 1.25 p. What is the price elasticity of demand if the price is $60 per unit and output is 45 units? The price elasticity of demand is nothing. (Enter a numeric response using a real number rounded to two decimal places.)

Determine the amount of money that must be invested now (time 0) at 10% nominal interest, compounded monthly, to provide an annuity of $7 comma 000 per year for 12 years, starting eight years from now. The interest rate remains constant over this entire period of time.

Answers

Answer:

the amount of money that must be invested now is $21068.87

Explanation:

Given that:

Nominal interest = 10%

Annuity = 7000

n = 8 years

The Effective interest rate is calculated by using the formula:

Effective interest rate = $( 1 + (r)/(100 * n))^n-1$

Effective interest rate = $( 1 + (10)/(100 * 8))^8-1$

Effective interest rate = 0.1045

Effective interest rate = 10.45 %

Thus ; the the amount of money that must be invested now is the present value with the annuity of $7, 000 per year for 12 years, starting eight years from now.

$PV = 7000(((1+ 0.1045)^(12)-1)/(0.1045(1 + 0.1045)^(12)))( (1)/((1+ 0.1045)^8))$

PV = 7000 × 6.666056912 × 0.4515171371

PV = $21068.87

Thus; the amount of money that must be invested now is $21068.87

Final answer:

To determine the required investment, the present value of the annuity starting 8 years from now should be calculated first and then its present value is computed today. This involves understanding the principles of simple and compound interest and applying their formulas accordingly.

Explanation:

In order to determine the amount of money that must be invested now at 10% nominal interest, compounded monthly, to provide an annuity of $7,000 per year for 12 years starting eight years from now, first, we have to calculate the present value of the annuity 8 years from now. We achieve this by using the formula for the present value of an annuity.

Later, we calculate the present value of that amount today. Then we employ the formula of present value in a situation where the compound interest is involved. Compound interest is an interest rate calculation on the amount deposited plus the accumulated interest so far.

This can be generally calculated by determining the difference between the future value and the present value of the amount deposited. In essence, the two major factors in this calculation are the understanding of the simple interest and compound interest, and using the formulae properly.

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The partners of Apple, Bere and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2008, were as follows: Apple Capital - 125,000,
Bere Captal 75,000, and
Carroll Capital - $50,000

The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is:

Answers

Answer:

The correct answer is $62,500.

Explanation:

According to the scenario, the given data are as follows:

Apple Capital = $125,000

Bere Capital = $75,000

Carroll Capital = $50,000

So, the total capital = $125,000 + $75,000 + $50,000 = $250,000

So, we can calculate the Dorr invest amount by using following formula:

Dorr invest amount = Present capital - Initial total Capital

Where, Present Capital = $250,000 ÷ ( 100% - 80%) = $312,500

By putting the value, we get

Dorr invest amount = $312,500 - $250,000

= $62,500.

Final answer:

Dorr should invest $50,000 to acquire a 20% capital interest in the partnership of Apple, Bere, and Carroll LLP.

Explanation:

The total capital of Apple, Bere and Carroll LLP is the sum of the capital accounts of the three existing partners: Apple ($125,000) + Bere ($75,000) + Carroll ($50,000) = $250,000. We know Dorr is buying a 20% capital interest, that would mean that Dorr should invest an amount equivalent to 20% of the total current capital. Hence, Dorr's investment would be 20% of $250,000, which equals $50,000.

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Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs. The restaurant earns $1.3 million in revenues. Based on this information, what is accounting profit for Laura's Pizza Place

Answers

Answer:

$500,000

Explanation:

Boise, a division of Price Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from Price. If Boise were to use the outside consultant, fixed operating costs would be reduced by 70%. The irrelevant costs in Boise’s outsourcing decision total:

Answers

Answer:

irrelevant costs in Boise’s outsourcing = $25500

Explanation:

given data

variable costs = $80,000

fixed operating costs = $25,000

administrative overhead = $18,000

fixed operating costs reduced = 70%

to find out

The irrelevant costs in Boise’s outsourcing decision total

solution

we get here first reduction in traceable cost that is

reduction = 30% of $25,000

reduction = $7500

so irrelevant costs in Boise’s outsourcing will be

irrelevant costs in Boise’s outsourcing = administrative overhead + reduction cost

irrelevant costs in Boise’s outsourcing = $18000 + $7500

irrelevant costs in Boise’s outsourcing = $25500

You are the newly appointed sales manager of the Rock Record Company and have been charged with the task of increasing revenues. Your economics consultants have informed you that at present price and output levels, price elasticity of demand for your product is less than one. You should:

Answers

Answer:

Increase price.

Explanation:

Price elasticity is the degree of responsiveness of quantity demanded to changes in price. Ideally as price increases quantity demanded reduces. When prices reduce quantity demanded increases.

As a new manager of Rock Record company, if the economics consultants inform you the price elasticity is less than one it means quantity does not change with increase in price.

So price can be increased without a corresponding decrease in price. The goal of higher revenue can be achieved by increasing the product price.

Answer:

The correct answer is: increase prices.

Explanation:

Price elasticity refers to the changes in quantity demand after the change in price for a good or service. Elasticity is calculated by dividing the percentage in quantity demanded by the percentage change in price. If the result is equal or greater than one (1) the demand is elastic. If the result is lower than 1 the demand is inelastic.

Thus, in the case given, Rock Record Company has an inelastic price demand since it is lower than 1. It implies changes in price are unlikely to change the quantity demanded. As the company needs to increase the revenue, the easiest method to achieve that is to raise the product prices.

Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,600 units)$108,000 Variable expenses 49,680 Contribution margin 58,320 Fixed expenses 44,300 Net operating income$14,020 If the company sells 4,300 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Answers

Answer:

$69,660

Explanation:

For computing the contribution margin first we have to determine the contribution margin per unit which is shown below:

Contribution margin per unit = Contribution margin ÷ Number of units

= $58,320 ÷ 3,600 units

= $16.2

Now if the sales unit is 4,300 so the contribution margin is

= Sales units × contribution margin per unit

= 4,300 units × $16.20

= $69,660

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