The Type of Subsidiary That Supports a Multinational Firm Strategy

question 29

Multiple Choice

The type of subsidiary that supports a multinational firm strategy based on location advantages is a/an

• A)Export department.
• B)Minireplica subsidiary.
• C)Transnational subsidiary.
• D)International division.

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Definitions:

Reconciliation

The process of ensuring two sets of records (usually the balances of two accounts) are in agreement, by identifying discrepancies and making necessary adjustments.

Consolidated Information

Financial information that combines the accounting records of a parent company and its subsidiaries into one set of financial statements, as if they were a single entity.

Separate Financial Statements

Statements presented by a parent or an investor with joint control of, or significant influence over, an investee, in which the investments are accounted for at cost in accordance with AASB 9 / IFRS 9.

Repurchased Shares

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.