Question:easy

A multinational company is a company having

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Focus on where the company actually runs its business, not where it is registered.
Updated On: Jul 13, 2026
  • its registration in more than one country
  • its operation beyond the country of origin
  • its operation through more than five sea ports
  • none of these
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the Question:
We need to pick the statement that correctly explains what makes a company 'multinational'.

Step 2: Key Formula or Approach:
Recall that the multinational label depends on where a company actually carries out business, not on its legal registration or its shipping arrangements.

Step 3: Detailed Explanation:
Every company is registered, or incorporated, under the law of one particular country, its home country, even when it later expands abroad, so registration in many countries is not how 'multinational' is defined.
The number of sea ports a firm ships through is a logistics detail, unrelated to how the company is classified.
What actually defines a multinational company is that it owns and runs operations, such as factories, branches or subsidiaries, in countries other than the one where it originated.
This lets it produce, sell or provide services directly in foreign markets rather than only exporting from home.

Step 4: Final Answer:
A multinational company is one whose operations extend beyond its country of origin. \[ \boxed{\text{Operation beyond the country of origin}} \]
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