"Unbundling Fund Transfers" from an MNC and to Its Affiliates

question 17

Multiple Choice

"Unbundling fund transfers" from an MNC and to its affiliates refers to the following activity:

• A) instead of lumping all costs into a single transfer price, for the MNC (parent firm) to recognize the cost of the physical good and each service separately that it provides to its affiliates.
• B) in addition to charging for the cost of the physical good, for the parent firm to charge for technical training of the affiliates' staff, cost of worldwide advertising, royalty, licensing fee, and technology, whenever applicable.
• C) used for removing blocked funds from a host country that is enforcing foreign exchange restrictions.
• D) All of these.

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Definitions:

Leadership Pyramid

A conceptual model illustrating the various levels of leadership within an organization, from front-line supervisors to top executives.

Empirically Tested

Subjected to systematic and objective validation or verification through observation or experiment.

Complacency

A state of self-satisfaction, often accompanied by unawareness of actual dangers or deficiencies.

Job Performance

Job performance comprises the behaviors employees engage in that are relevant to the organization's goals and that can be measured in terms of each individual's effectiveness.