Which of the Following Is True of a Firm That

question 91

Multiple Choice

Which of the following is true of a firm that tries to coordinate and control the worldwide operations of its subsidiaries?

• A)The management personnel of its subsidiaries need to be fluent only in English.
• B)The subsidiaries based in different countries never face any constraints on the transfer of corporate resources.
• C)Cash flows in different subsidiaries are denominated in different currencies.
• D)The terms of trade determined after negotiation with the host government and the multinational corporation are always well aligned to the firm's policies.
• E)All the subsidiaries are based only in countries that have homogeneous cultural heritages.

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Definitions:

Purchase Commodities

The act of buying raw materials or primary agricultural products that can be exchanged with other goods of the same type.

Budget Constraint

A financial limit that represents the combination of goods and services a consumer can purchase with their available income.

Consumer's Income

The total amount of income earned by an individual or household from various sources, influencing their purchasing power and demand for goods and services.

Price of a Book

The amount of money charged for a book, determined by factors like publishing costs, author royalties, and market demands.