When the Home Office Interferes with a Subsidiary in Another

question 20

True/False

When the home office interferes with a subsidiary in another country, profitability suffers, but morale is unaffected and the investment eventually produces high returns.

---

Definitions:

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Perfectly Price Discriminate

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay.

Output

Output refers to the total amount of goods and services produced by a company, industry, or economy within a given period.

Profit-Maximizing Price

The optimal selling price for a product or service that allows a company to achieve the highest possible profit.