Which statement best defines a multinational company?

Which statement best defines a multinational company?

• A. A company that operates only in one country
• B. A company that produces and sells goods in more than one country
• C. A government-owned company
• D. A company that only trades without production

Answer: (B)

A multinational company is a business that operates in more than one country, often with production facilities and sales across different markets. The statement that best defines it is the one about producing and selling goods in more than one country, because crossing borders to manufacture and market products is the essence of being multinational. The other choices miss this key idea: operating in only one country describes a domestic firm; government ownership concerns who owns the business rather than where it operates; and trading without production describes a firm that may import/export but not necessarily produce across borders.

A multinational company is a business that operates in more than one country, often with production facilities and sales across different markets. The statement that best defines it is the one about producing and selling goods in more than one country, because crossing borders to manufacture and market products is the essence of being multinational. The other choices miss this key idea: operating in only one country describes a domestic firm; government ownership concerns who owns the business rather than where it operates; and trading without production describes a firm that may import/export but not necessarily produce across borders.