The threat of expropriation creates an incentive for a multinational firm to minimize inventory holdings and to bring in goods only as needed.
Answer the following statement true (T) or false (F)
True
If the threat of expropriation is large, inventory holdings will be minimized, and goods will be brought in only as needed. See 15-6: Multinational Working Capital Management
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Which of the following is NOT necessary for a successful acquisition?
A. Good bidding strategy B. Clear strategic rationale for making the acquisition C. Quick completion of the acquisition D. Thorough pre-acquisition screening E. Post-acquisition audit to review the process and discuss ways to improve it
Generally, the higher a firm’s inventory turnover ratio is, ______.
A. the more time its inventory spends in storage B. the more efficient the firm’s use of the inventory is C. the more the inventory is in the warehouse D. the lower the demand for the firm’s products is
A saucer-shaped or U-shaped weighted average cost of capital curve results from the tax
deductibility of interest, which results in the downward slope, followed by the recognition of potential financial distress costs, that cause the upward slope as the amount of debt ratio increases. Indicate whether the statement is true or false
The buyer of a put option
A. expects prices to rise. B. expects prices to fall. C. owns the underlying stock. D. does not own the underlying stock.