Question

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.

Answer 1

Cash flows in various parts of a multinational corporate system are denominated in one currency.

Step-by-step explanation:

Corporations that operate in several different countries, also known as multinational corporations (MNCs), have certain characteristics.

Out of the given options, the most accurate characteristic of MNCs is b. Cash flows in various parts of a multinational corporate system are denominated in one currency.

This means that the financial transactions within the MNC, such as revenues, expenses, and investments, are conducted using a single currency, which helps in simplifying the financial management of the organization.