An MNC's "global" capital structure is:
A) the MNC's capital structure in the United States.
B) the MNC's capital structure relative to the structures of competitors across all countries.
C) the MNC's capital structure where it has its largest subsidiary.
D) the combination of the capital structures of the parent and all of its subsidiaries.

Question

Quizplus · Accepted Answer

The "global" capital structure of an MNC refers to the combination of the capital structures of the parent company and all of its subsidiaries across all countries. This includes debt and equity financing, as well as any other financial instruments used to raise capital. Therefore, the correct answer is D, which is the combination of the capital structures of the parent and all of its subsidiaries.

An MNC's "Global" Capital Structure Is