Why might an MNC's working capital situation be more complex than a domestic firm's working capital situation?
A)An MNC's current assets and current liabilities are consolidated across its subsidiaries,which means that there are a variety of risks involved in those assets and liabilities.
B)An MNC is usually much larger than domestic firms,so MNCs have more assets and more liabilities and more need for working capital.
C)An MNC has more complex financing arrangements than domestic firms.
D)MNCs are subject to more regulation than domestic firms.

Question

Quizplus · Accepted Answer

An MNC's working capital situation is more complex because it involves consolidating current assets and liabilities across various subsidiaries in different countries, each with its own set of risks, such as currency fluctuations and differing economic conditions.

Why Might an MNC's Working Capital Situation Be More Complex