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Of the Following, Which Is NOT Considered to Be a Disadvantage

Question 28

Multiple Choice

Of the following, which is NOT considered to be a disadvantage to MNEs of having a financial structure adhere to local debt norms?


A) Why adhere to local standards if, as an MNE, the firm has important competitive advantages relating to capital structure?
B) Adhering to local standards may push the MNE consolidated financial ratios out of the optimal range.
C) A localized financial structure makes it difficult for management to compare operating results with those of local competitors.
D) All of the above are noted as disadvantages to having a localized capital structure.

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