The Common Characteristic of Multinationals That Are Organized by Function

question 56

Multiple Choice

The common characteristic of multinationals that are organized by function at the upper level is a narrow:

• A) and highly integrated product mix.
• B) and highly integrated customer list.
• C) variation of prices in the product mix.
• D) research and development effort.
• E) none of the above

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Definitions:

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production inputs, which vary with the level of output.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the amount of goods or services produced, such as rent or salaries.

Selling Price

The amount of money for which something is sold to a customer.

Operating Cash Flow

The cash generated by a company's normal business operations, indicating whether a company is able to generate enough positive cash flow to maintain and grow its operations.