The Difference Between Transferring Skills and Sharing Activities Is

question 75

Multiple Choice

The difference between transferring skills and sharing activities is?

• A)Transferring skills typically requires bringing in new resources from outside the group to bring in fresh capabilities, while in sharing activities, the corporate center changes the structure to create units with multidivisional responsibilities such as marketing, design or R&D
• B)Transferring skills typically requires moving people to pass on their skills from one division to another, while in sharing activities, the corporate center changes the structure to create units with multidivisional responsibilities such as marketing, design or R&D
• C)Sharing activities requires the corporate center to become involved while transferring skills does not
• D)Transferring skills requires the corporate center to become involved while sharing activities does not

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Definitions:

Contractual Agreement

A legally binding agreement between two or more parties, typically outlining the terms and conditions of a business transaction or relationship.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, recognizing the proportionate share of the investee's net income or loss.

Variable Interest Enterprise

An entity in which an investor holds a controlling interest that is not based on a majority of voting rights.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company with its subsidiaries into one comprehensive document.