Identify a Factor That Encourages the Use of Centralized Decision

question 1

Multiple Choice

Identify a factor that encourages the use of centralized decision making in subsidiary operations.

• A) Little experience in international business
• B) Moderate to low degree of technology
• C) Small geographic distance between home office and subsidiary
• D) Little importance attached to brand name and patent rights

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Definitions:

Maker

In financial terms, the maker is typically the person who creates or signs a promissory note, thereby agreeing to pay the note’s value at maturity.

Notes Receivable

Represents claims against others, recorded by promissory notes, for money to be paid to the company.

Journal Entry

The recordation of a financial transaction in an accounting system, showing the accounts and amounts debited and credited.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that may not be collectible.