The International Model of Organizational Structure Involves

question 109

Multiple Choice

The international model of organizational structure involves

• A)large low-cost manufacturing facilities located in selected locations, with products exported to various subsidiaries.
• B)subsidiaries located in countries where the company does business, with much of the control exercised by the parent company.
• C)subsidiaries located in countries where the company does business, with much of the control exercised by the subsidiaries.
• D)manufacturing various components at appropriate sites and assembling the components at national subsidiaries.
• E)farming out core functions, such as research and development, to subsidiaries around the world.

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Definitions:

Net Income

The final financial gain of a business after subtracting total costs and taxation from its aggregate income.

Extraordinary Loss

Unusual and infrequent losses that are not part of the ordinary activities of a business, such as losses from natural disasters.

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or eliminated from operations, often reported separately in financial statements.

Held-to-maturity Securities

Debt securities that an investor intends to hold until a fixed maturity date.