You are the chief financial officer at an MNE. What are your main ...

[craiczarry]

You are the chief financial officer at an MNE. What are your main responsibilities in this position? What taxation issues have a significant effect on the decisions you make?
 
  What will be an ideal response?

Question 2

Being disabled qualifies an individual for a job.
 
  Indicate whether this statement is true or false.

[jennafosdick]

Answer to Question 1

One of the most important people on the management team, crucial to a company's success, is the vice president of finance, also known as the chief financial officer (CFO). The CFO acquires financial resources and allocates them among the company's activities and projects. Acquiring resources means generating funds either internally or from sources external to the company at the lowest possible cost. The CFO's job is more complex in a global environment than in the domestic setting because of forces such as foreign-exchange risk, currency flows and restrictions, different tax rates and laws pertaining to the determination of taxable income, and regulations on access to capital in different markets. Tax planning is a crucial responsibility for the CFO, because taxes can profoundly affect profitability and cash flow. Taxation has a strong impact on several choices made by the CFO, such as location of operations; choice of operating form, such as export or import, licensing agreement, or overseas investment; legal form of the new enterprise, such as branch or subsidiary; possible facilities in tax-haven countries to raise capital and manage cash; method of financing, such as internal or external sourcing and debt or equity; capital budgeting decisions; and method of setting transfer prices.

Answer to Question 2

Answer: FALSE