Which of the Following Is the Defining Characteristic of a Free-Agent

question 19

Multiple Choice

Which of the following is the defining characteristic of a free-agent economy?

• A) People change jobs more often, and many work on independent contracts with a shifting mix of employers.
• B) The structure is totally centralized, and the leader makes all key decisions while most communication is done by one on one conversations.
• C) It consists of boundary-less organizations whose employees communicate only through the virtual media.
• D) In this system, organizations are exempted from tax, given that they use HYPERLINK "http://en.wikipedia.org/wiki/Economic_surplus" \o "Economic surplus" surplus revenues to achieve their goals rather than distribute them as profit.
• E) The structure is fully functional, and it consists of long-term employees who are mostly concerned with their respective areas of interest.

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Definitions:

Foreign Subsidiary

A company that is owned or controlled by another company (parent company) and is located in a country different from where the parent company is headquartered.

Net Liability Balance

The amount by which liabilities exceed assets, showing a negative balance sheet position.

Foreign Currency

Currency used in a country other than one's own, impacting transactions and financial reporting in international business operations.

Translation Adjustment

Translation adjustment is an accounting process used to convert the financial statements of a company's foreign operations into the company's functional currency, accounting for exchange rate changes.