ZenTechno's Subsidiary in Belwick Attempts to Share Its Best Practice

question 58

Multiple Choice

ZenTechno's subsidiary in Belwick attempts to share its best practice of collecting consumer data with another subsidiary of the company in Zaneland. However, the Belwick subsidiary faces resistance from individuals in the Zaneland subsidiary who are reluctant to use knowledge that was not created in their unit. This creates _____ in subsidiaries.

• A) a not-invented-here problem
• B) a hoarding of expertise problem
• C) a needle-in-a-haystack problem
• D) a foreigner problem

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Definitions:

Earnings

The amount of profit that a company produces during a specific period.

Signaling Effect

The signaling effect is a theory in economics and finance suggesting that actions taken by a company, such as dividend announcements or share repurchases, send signals to the market about the company’s financial health and prospects.

Stock Prices

Stock prices are the current market price at which shares of a company can be bought or sold. They fluctuate based on demand and supply, company performance, and market conditions.

Dividends

Funds distributed by a company to its shareholders, typically coming from the firm's profits.