A multinational company is defined as a large business with significant production or service operations in at least two different countries.

A multinational company is defined as a large business with significant production or service operations in at least two different countries.

• A. A multinational company is a large business with significant production or service operations in at least two different countries
• B. It is owned only by the government
• C. It operates in a single country
• D. It avoids foreign markets

Answer: (A)

The main idea is cross-border operations. A multinational company is defined by having significant production or service activities in more than one country. The statement that describes a large business with substantial operations in at least two different countries captures this clearly: it shows the company operates beyond its home country and coordinates activities across borders. This international presence is what sets multinationals apart from purely domestic firms. The other options mischaracterize the concept: being government-owned describes a state-owned entity, not necessarily multinational; operating in a single country is simply a domestic business; and avoiding foreign markets is the opposite of operating internationally.

The main idea is cross-border operations. A multinational company is defined by having significant production or service activities in more than one country. The statement that describes a large business with substantial operations in at least two different countries captures this clearly: it shows the company operates beyond its home country and coordinates activities across borders. This international presence is what sets multinationals apart from purely domestic firms. The other options mischaracterize the concept: being government-owned describes a state-owned entity, not necessarily multinational; operating in a single country is simply a domestic business; and avoiding foreign markets is the opposite of operating internationally.