Which of the Following Statements Is True About Transnational Network

question 67

Multiple Choice

Which of the following statements is true about transnational network structures?

• A) A major drawback of transnational network structures is that they focus on goods that are proven winners and now are marketed conveniently worldwide.
• B) It is easy to draw a transnational network structure in the form of an organization chart because it is simple and constant.
• C) They may use more than one strategy to supplement inefficient operations, but they are still fairly centralized in the sense that decisions are balanced between the main headquarters and international subsidiaries.
• D) They are convoluted integrations of business functions and communications where decisions are made at the local level, but each grouping informs headquarters and sometimes each other.

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Definitions:

Portfolio Risk

The potential for losses or lower than expected returns from an investment portfolio due to various factors like market volatility.

Interest Rate

The financial cost, expressed as a percent of the principal, that borrowers incur from lenders to use assets.

Present Value

The existing value today of a sum of money to be received in the future or continuous cash inflows, calculated at a certain rate of return.

Loanable Funds

The money available for borrowing, which includes savings that are available for investment and loans.