Which of the Following Is Not an Appropriate Coordination Mechanism

question 4

Multiple Choice

Which of the following is not an appropriate coordination mechanism to be employed by a transnational corporation with worldwide activities?

• A) The coordination of information flows through the socialization of employees.
• B) The coordination of asset flows through a process of rationalization.
• C) The coordination of product flows through formalized management processes.
• D) The coordination of resource flows through centralized decision-making.

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Definitions:

Operating Cycle

The Operating Cycle refers to the period of time it takes for a company to purchase inventory, sell the products, and turn the sales into cash.

Classified Balance Sheets

Balance sheets that organize assets and liabilities into subcategories, such as current and non-current, to provide a clearer financial picture.

Long-Term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, or real estate.

Intangible Assets

Non-physical assets with value to a business, such as trademarks, patents, goodwill, and copyrights.