TechInnovation Is a Large MNE Operating in an Environment Characterized

question 33

Multiple Choice

TechInnovation is a large MNE operating in an environment characterized by rapid changes.During the past 50 years,its subsidiaries have operated independently.Which of the following actions will be least helpful to increase the interdependence across its widely dispersed national organizations?

• A) TechInnovation could centralize more decision-making to counter-balance the decentralization that has taken place during the past 50 years.
• B) TechInnovation could create regular cross subsidiary meetings to coordinate activities and resolve differences.
• C) TechInnovation could break up its value-chain to ensure that subsidiaries perform interrelated activities.
• D) TechInnovation could develop career paths to routinely transfer managers across subsidiaries.

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Definitions:

Worthless Securities

Describes financial instruments that have lost all monetary value.

Due Diligence

The comprehensive investigation or exercise of care that a reasonable business or person is expected to undertake before entering into an agreement or transaction.

Gross Misstatements

Significant errors or falsehoods in a financial statement or other crucial documents.

Reasonable Investigation

A diligent inquiry or examination to discover facts or gather evidence, conducted within the bounds of what is considered reasonable under the circumstances.