The term "global" target capital structure for an MNC represents the MNC's capital structure:
A) in the U.S.
B) relative to competitors across all countries.
C) where it has its largest subsidiary.
D) when consolidating all of its subsidiaries.

Question

Quizplus · Accepted Answer

The term "global" implies that it is inclusive of all of the MNC's subsidiaries across different countries. Therefore, the global target capital structure represents the MNC's capital structure when consolidating all of its subsidiaries.

The Term "Global" Target Capital Structure for an MNC Represents