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Discuss the different ways political events in a host country may affect local operations of an MNC.Answer: The answer can be organized based on the three types of political risk: that are, transfer risk, operational risk, and control risk. Transfer risk takes place from the uncertainty about cross-border flows of payments, capital, and know-how and so on. Operational risk takes place from the uncertainty about the host country’s policies influencing the local operations of MNCs. Control risk takes place from the uncertainty about the host country’s policy as regards to the ownership and control of local operations of MNCs.
What is the matching principle of working capital financing? What are the advantages of following this principle? The matching principle is while short-term financing is employe
a) What are the pre-requisites of installation of responsibility accounting system? b) Diffrence between 'cost centre' and 'profit centre'.
Q. What are the misstatements? A Misstatement is Inconsequential - If a reasonable person would determine after considering the possibility of further undetected misstatement
what are the ten agency problems between shareholders and auditors and their solutions
Explain how management goals are incorporated into pro forma financial statements. Management put a target goal and forecasters makes pro forma financial statements under the
Explain how earnings available to common stockholders and common stock dividends paid from the current income statement affect the balance sheet item retained earnings. The cha
Explain the preferred stocks by equity claims. Preferred stocks are equity claims with limited ownership rights in comparison to common stocks. They differ from common stocks i
Why would it be useful to examine a country’s balance of payments data? Answer: It would be helpful to observe a country’s BOP for at least two reasons. First, BOP offers detail
Management Accounting: Management accounting on the other hand tends to focus internally. Reports generated through management accounting processes will be used by the organisa
The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31,
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