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Multinational companies Flashcards | StudBud
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Multinational companies
Multinational companies
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StudBud Administration
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This is a business quiz on topics such as MNC and globalisation
Flashcards
10 cards
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Questions
10
Answers
1
Why do companies decide to be multinational
To reduce production costs
To completely avoid tax liability
Gain trade barriers
Entering a new country gives the business a new market
2
What are the advantages of an MNC
Size allows them to benefit from economies of scale
Creates jobs and wealth fro other countries
Market dominance
Large and new market
3
Disadvantages of MNC's
Abusing minimal government laws by using slave labour
Loss market share if they expand too quickly
Too little profit by giving away too much promotions
Push out small local businesses
4
Which of the following definitions if about Capital?
The assets,property, resources owned by a person or company
Wealth in form of money or other assets owned by a company
Total amount of money a company or person currently has
A financial gain between the amount spent and received
5
How do big companies gain profit from economies of scale?
More customers are attracted due to the cost decreasing
More profit due to having access to more areas
Marketing companies spread promotions over a larger area
Profit is gained because of certain government laws
6
What is a limited liability company
A company that is liable to debt based on the money invested
A company liable to debt proportional to thecapital invested
A company that is not liable to debt
A company that can only gain a limited amount of profit
7
What is repatriation of profit?
The transfer of corporate money from a foreign country
Management of large amounts of money from an outside country
A fancy way of saying debt
The transfer of property from a foreign country
8
What is Globalisation?
A company has sectors in every part of the world
A company begins establishes an international influence
Has facilities in one or more countries other than its own
9
What are the draw backs of a limited liability company?
Corporation tax is charged at a higher rat
Have stricter accounting rules
Usually government controlled
Cannot be converted to a tradable stock company
10
Which of the following jobs belongs in the secondary sector?
Entertainment
Metal works and smelting
Farming
Chef
