In the Context of Expatriate Compensation, What Is the Role

question 68

Multiple Choice

In the context of expatriate compensation, what is the role of a balance sheet approach?

• A) It equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home.
• B) It helps expatriate managers and their families to adjust to the day-to-day life of the host country.
• C) It rewards expatriates on the basis of merit and performance.
• D) It helps promote goodwill among all managers regardless of posting.
• E) It is offered as an inducement to accept foreign postings and live away from family.

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Definitions:

Net Income

The profit amount a company achieves after all its expenses and taxes have been subtracted from its revenue stream.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owners' share.

Liabilities

Economic obligations or debts that an entity owes to external parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Properties or items owned by an organization or a person, which have value and can offer future advantages.