Which of the Following Is NOT True Regarding the Use

question 50

Multiple Choice

Which of the following is NOT true regarding the use of control options by most multinationals?

• A)Most multinationals use several types of coordination mechanisms.
• B)Multinationals with export departments have very high need for coordination.
• C)Matrix and transnational structures have very high needs for coordination.
• D)For transnational networks, teams are increasingly virtual with members seldom meeting face-to-face.

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Definitions:

Partial Equity Method

An accounting approach where an investor recognizes income from its investment in an associate to the extent of dividends received, differing from the full equity method which recognizes income as it's earned by the associate, regardless of dividends received.

Fair Value

The exchange value of an asset or the settlement cost of a liability in a well-arranged transaction with participants in the market on the measurement occasion.

Book Value

The net value of a company's assets minus its liabilities, often used as a measure of the company's worth.

Equipment

Tangible property used in the operation of a business that is not intended for sale, including machinery, tools, and vehicles.