Question

Which of the following statements is false? a. A multinational company pays taxes only in the country in which it is headquartered. b. Multinational companies are sometimes called transnational corporations. c. Multinational companies account for more than $3 trillion of worldwide assets. d. A multinational company usually has headquarters in one country and branches in other countries.

Answer 1

Answer:

a. A multinational company pays taxes only in the country in which it is headquartered.

Explanation:

Multinational pay income taxes and other statutory fees in each of the countries they operate. Every state has its laws regulating taxation within its borders.  Businesses, local or multinationals operating in that country, must abide by those laws.

Not paying taxes is a criminal offense in many countries.