For MNEs Pursuing a Home-Replication Strategy, Knowledge Management

question 20

Multiple Choice

For MNEs pursuing a home-replication strategy, knowledge management:

• A)​Is characterized by a great deal of dependence among subsidiaries.
• B)Develops mostly at the subsidiary level and flows upward to headquarters.​
• C) ​Occurs in a one-way flow from center to subsidiaries.
• D) ​None of the above.

---

Definitions:

Leverages

The use of borrowed money (debt) in addition to equity in the investment to finance the purchase of assets and increase the potential return on investment.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activity by operating, investing, and financing activities.

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventories.

Return on Sales

A financial ratio that calculates a company's net income relative to its revenue, showing how efficiently it converts sales into profits.