MNCs Can Improve Their Internal Control Process by All of the Following

question 57

Multiple Choice

MNCs can improve their internal control process by all of the following, except:

• A) establishing a centralized database of information.
• B) ensuring that all data are reported consistently among subsidiaries.
• C) ensuring that the MNC always borrows from countries where interest rates are lowest.
• D) using a system that checks internal data for unusual discrepancies.

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services, typically a percentage of the retail price.

Low-Income

Referring to individuals or families that earn significantly less than the average income level, often qualifying for various forms of government assistance.

Positive Economics

Real-world economics that focuses on describing, analyzing, and explaining economic phenomena as it actually is, not as it should be.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one economic variable from the influence of others.