If Only One Currency Is Used for Evaluating Subsidiary Performance

question 25

Multiple Choice

If only one currency is used for evaluating subsidiary performance in a multinational corporation, what currency is it most likely to be?

• A) Euros
• B) Local currency of the subsidiary
• C) Currency of the parent company's home country
• D) None of the above

Recognize the significance of competition and innovation in a market system.

Grasp the Five Fundamental Questions of economics within a market system.

Identify unique characteristics of a market system including private ownership and competition.

Understand the concept and significance of specialization in economic production.

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Definitions:

Assign

To transfer property by sale, mortgage, pledge, or otherwise.

Floating Lien

A provision, placed by the creditor, in a security agreement that a security interest of the creditor also applies to goods the debtor acquires at a later time.

Inventory

Goods held for sale or lease, or raw materials used or consumed in a business.