A Global MNC Should Use What Type of Controls Over

question 9

Multiple Choice

A global MNC should use what type of controls over its foreign units?

• A) Management should be given considerable latitude, but be required to meet some predetermined performance targets.
• B) Management should use a matrix structure allowing some limited autonomy of the foreign unit.
• C) Management needs to exert tight controls over its many units using a centralized strategic operational decision-making format.
• D) Management should use a functional approach assigning distinct and separate responsibilities to each department throughout the MNC.
• E) Management should use a divisional approach assigning goals and targets for each product-group on all its foreign units collectively.

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Definitions:

Joint-Account Owner

An individual who shares ownership and control over a bank account with one or more persons.

Contractual Rights

Legal entitlements granted to individuals or entities based on the terms of a contract.

Duties Of The Bank

The legal and ethical obligations that a bank owes to its customers, including safeguarding deposits, providing secure transactions, and rendering accurate information.

Liability For Negligence

A legal obligation that arises when an individual or entity fails to take reasonable care to avoid causing injury or loss to another person.