Which of the Following Statements Is True of a Global

question 21

Multiple Choice

Which of the following statements is true of a global organizational structure?

• A) It requires an extensive communication network.
• B) It uses highly decentralized information systems.
• C) It easily integrates production, marketing, and human resources.
• D) It provides complete autonomy to the subsidiaries of the parent organization.

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Definitions:

Order of Magnitude

A classification of scale or size of a quantity, where each class is ten times greater or smaller than the one before.

Gross Method

An accounting practice where purchases are recorded at the total invoice cost without deducting any purchase discounts.

Net Method

An accounting approach where discounts for early payment are assumed to be taken and thus are deducted from the cost of purchases.

Accounts Payable

Short-term liabilities representing amounts owed to suppliers or creditors for goods and services received.