Which of the Following Is a Drawback of Decentralizing a Multinational

question 75

Multiple Choice

Which of the following is a drawback of decentralizing a multinational company?

• A) It may lead to increased exchange rate risk.
• B) It may result in lack of control and results in increasing risk.
• C) It creates less responsiveness to the needs of a subunit's customers, suppliers, and employees.
• D) It may lead to an increase in bureaucracy.

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Definitions:

Consideration

Something of value exchanged between parties as part of a contract, which is required for the contract to be legally binding.

Holder

Someone who legally possesses a negotiable instrument, such as a check or bond, and has the right to enforce it.

Instrument

In legal and financial contexts, a formal document like a contract, will, or negotiable instrument that establishes legal rights and obligations.

Value Requirement

The necessity for something to have worth, importance, or significance in a specific context, often used in legal and financial settings to assess validity or enforceability.