Two Common Ways of Looking at How MNCs Control Operations

question 66

Multiple Choice

Two common ways of looking at how MNCs control operations are:

• A)Determining whether the organization uses accounting or strategic controls and by choosing whether the enterprise uses simple or complex controls
• B)By looking at the ways in which the organization uses hierarchical and bureaucratic controls and by looking at the ways in which the organization uses external or internal controls
• C)Choosing whether the enterprise uses simple or complex controls and by determining whether the organization uses financial or strategic controls
• D)Determining whether the enterprise chooses to use internal or external control and by looking at the ways in which the organization uses direct and indirect controls

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Definitions:

Securities Act

A federal piece of legislation enacted in 1933 that regulates the offer and sale of securities to protect investors from fraud.

Controlling Person

An individual or entity that has the power to direct or influence the management and policies of a company, typically through ownership of a significant portion of voting shares.

Affirmative Defense

A defendant’s response to a plaintiff’s claim in which the defendant attacks the plaintiff’s legal right to bring the action rather than attacking the fact of the claim or making excuses for unlawful behavior. Common

GAAS

Generally Accepted Auditing Standards, which are guidelines that auditors follow when conducting audits on companies' finances.