Equator, a U

question 107

Multiple Choice

Equator, a U.S.manufacturer of pharmaceuticals, has acquired a firm in the same industry in Ireland.It plans to transfer one of its key managers from its plant in St.Louis to Ireland.Which of the following is the major threat to Equator's plan to transfer competencies from itself to the Irish firm?

• A) The St.Louis manager may quit Equator in order to remain in St.Louis.
• B) American pharmaceutical manufacturing techniques may not transfer to Ireland.
• C) Irish managers will refuse to take direction from a foreign executive.
• D) Transferring U.S.managers overseas is not usually cost-effective.

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Definitions:

Generally Accepted Accounting Principles

A set of accounting standards and procedures that are used in the United States to govern financial reporting and accounting.

Managerial Accounting Reports

Financial reports that provide detailed and specific information to a company's management to aid in decision making, planning, and controlling activities.

Organization Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Operating Structure

The functional and organizational setup of a company, encompassing its business operations, divisions, and the relationships between various departments.