Tag: advantages and disadvantages of mncs

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Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

MNC ________Select the most suitable.

  1. are Indian companies that trade their securities onthe other countries exchange.

  2. are firms that conduct their operations in more than one country through subsidiaries, division, or branches in foreign countries

  3. are doing business at a large scale for public

  4. are Indian companies that sell goods and services in other countries
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Multinational Corporation (MNC) is a corporation enterprise that manages production or delivers services in more than one country. Generally the MNC has its headquarters in one country and have offices or factories in different countries

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

What is true for Branch office?

  1. It is not allowed to carry on manufacturing activity on its own.

  2. It is allowed to carry on manufacturing on its own.

  3. It is allowed to carry on business without the permission of RBI

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A branch office is an outlet of a company or, more generally, an organization that unlike a subsidiary does not constitute a separate legal entity, while being physically separated from the organization's main office. Branching is particularly widespread in banking and other financial institutions, where the products' complexity requires local offices to act more like an agency than as a separate company. A branch structure exposes the owning company to full taxability and legal liability in regard to the branch office's operations.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

A MNC is defined by an organisation ____________.

  1. carrying out production in more than one country.

  2. having sales in more than one country.

  3. having a multi-ethnic workforce

  4. having-suppliers in more than one country
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A MNC is defined by an organization that carries out production in more than one country other than the domestic country.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Which of the following is an example of a multinational corporation?

  1. McDonald's

  2. Nirma

  3. World trade organization

  4. United Nations Organization
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

McDonald's is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

The Multinational corporation ____________.

  1. Always do the marketing of the primary goods.

  2. Always produced manufactured goods.

  3. Always do the marketing of the manufactured goods.

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate global management.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

A MNC is defined by an organization ___________.

  1. carrying out production in more than one country.

  2. having sales in more than one country.

  3. having a multi-ethnic workforce

  4. having- suppliers in more than one country
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A multinational corporation (MNC) or worldwide enterprise is a corporate organisation which owns or controls production of goods or services in at least one country other than its home country.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Which of the following is not key advantage of MNC?

  1. Technology movement

  2. Support enterprises in host countries

  3. Production duplication

  4. Provided services of professionals
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Multinational organisations have the ability to source labor cheaply. The ability to operate in multiple different companies builds in the ability to capitalize on cheap labor markets. 

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

What is the reason for MNC's Growth?
A. Reduce transport and distribution costs
B. Meet different rules and regulations.
C. Avoid trade barriers
Select the correct answer from the options given.

  1. A and B

  2. B and C

  3. C and B

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
  • Location – MNCs have their headquarters in home countries and have their operational division spread across foreign countries to minimize the cost.
  • Capital Assets – Major portion of the capital assets of the parent company is owned by the citizens of the company’s home country.
  • Board of Directors – Majority of the members of the Board of Directors are citizens of the home country.
  • MNCs are large-sized corporation and exercise a great degree of economic dominance.
Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

_________ is a corporation enterprises that manages production or delivers services in more than one country.

  1. A Multinational Corporation(MNC)

  2. Multinational Enterprise(MNE)

  3. (A) or (B)

  4. Neither (A) nor (B)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

"International business" is also defined as the study of the internationalisation process of multinational enterprises. A multinational enterprise (MNE) is a company that has a worldwide approach to markets, production and/or operations in several countries. and A multinational corporation or worldwide enterprise is a corporate organisation which owns or controls production of goods or services in at least one country other than its home country