A Multinational Company (MNC)is Likely to Centralize Its Decision Making

question 26

Multiple Choice

A multinational company (MNC) is likely to centralize its decision making when:

• A) it has a mature product line and the subsidiary managers are experienced.
• B) it is a high-tech, research-intensive firm dealing with sophisticated levels of technology.
• C) a subsidiary has superior staff and resources which is likely to become increasingly skilled in manufacturing and marketing products at the local level over time.
• D) the home office has more confidence in delegating to the local level and less to gain by making all the important decisions.

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Definitions:

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances, leading to unintended harm.

Proximate Cause

A legal concept that identifies the primary cause of damage or injury in a negligence lawsuit, determining the extent of a defendant's liability.

Gas Cans

Portable containers designed specifically for the storage and transport of gasoline or other flammable liquids.

Foreseeable

An event or consequence that a reasonable person would expect to occur under the circumstances.