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.

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Ming

Business

12 May, 00:05

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.

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Frankie Whitehead · Answer 1

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.