A New Assignment (Scenario)

question 13

Multiple Choice

A New Assignment (Scenario)
Mariam was given a new assignment to head up the European division of a multinational organization. Before leaving her country to take up her new assignment she needed training to manage and understand the European division.
-European multinational firms commonly use a __________approach because they are operating in multiple countries with different institutional environments.

• A) multidomestic approach
• B) global approach
• C) transnational
• D) supply chain

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Definitions:

Accrual Basis Accounting

Revenues are recognized when goods and services are provided to customers, and expenses are recognized in the same period as the revenues to which they relate, regardless of when cash is received or paid.

Revenues

The total amount of money received or expected to be received by a company from its business activities, such as the sale of goods or services, before any expenses are deducted.

Expenses

Costs incurred in the process of earning revenue; general operational costs of a business.

Operating Revenue

Revenue earned from a company’s primary business activities, excluding items like investment revenue.