A Firm Following a Multidomestic Strategy

question 5

Multiple Choice

A firm following a multidomestic strategy

• A) is highly efficient.
• B) lacks local responsiveness.
• C) faces a greater risk of intellectual property (IP) appropriation.
• D) requires exposing explicit knowledge because products are manufactured locally.

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Definitions:

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers and replenishments.

Voucher System

A control mechanism in accounting where vouchers are used to authorize the payment of a liability; an internal control for cash disbursements.

Bank Deposit

A sum of money placed in an account with a banking institution, often earning interest.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement to ensure consistency and accuracy in financial records.