Which of the Following Is a Salient Feature of Direct

question 20

Multiple Choice

Which of the following is a salient feature of direct control methods?

• A) They are typically used by multinational companies to monitor performance on a monthly basis, whereas indirect controls are used semiannually or annually.
• B) They are particularly important in international management because of the great expense associated with indirect control methods.
• C) They allow top managers to learn firsthand the problems and challenges facing a unit and offer assistance.
• D) They involve the use of reports and other written forms of communication to control operations.

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Definitions:

Bond Price

The amount of money for which a bond is bought or sold in the market, influenced by interest rates, credit quality, and maturity period.

YTM

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until its maturity date, accounting for its current market price, interest payments, and time value.

AAA Credit Rating

The highest credit rating assigned to a borrower's debt instruments by credit rating agencies, indicating an extremely low risk of default.

A Credit Rating

This is an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt and an implicit forecast of the likelihood of the debtor defaulting.