Which of the Following Is Not a Characteristic of the Companies

question 7

Multiple Choice

Which of the following is not a characteristic of the companies with centralized hub structure?

• A) Most of the key assets and resources are concentrated in the home country.
• B) Tight strategic and operational controls are maintained over the subsidiaries.
• C) Most of the manufacturing and product development is executed by the subsidiaries.
• D) Corporate management regards its subsidiaries as delivery pipelines to the global market.

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Definitions:

Elastic

A characteristic of a good or service with demand or supply that is responsive to changes in price, typically resulting in significant quantity changes when prices vary.

Inelastic

Describes a situation in which the demand for a good or service is relatively unresponsive to changes in price.

Total-revenue Curve

A graphical representation that shows how a company's total revenue changes in response to changes in the quantity of goods or services sold.

Linear Demand Curve

A representation of the relationship between the price of a good and the quantity demanded, characterized by a constant slope, indicating a steady change in demand relative to price.