Which of the Following Is True of the Parent-Subsidiary Relationship

question 107

Multiple Choice

Which of the following is true of the parent-subsidiary relationship?

• A) The ability to create a community of knowledge is low.
• B) The parent firm has no control and command over the subsidiary.
• C) The transaction costs that arise are frequently due to transfer prices.
• D) The parent firm will lack specialization and division of labor.

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Definitions:

Implicit Attitude

Unconscious beliefs or feelings towards objects or individuals that influence one's reactions and decisions without explicit awareness.

Objective Norm

A perceived rule of behavior that is considered standard and acceptable by a majority within a societal or cultural context.

Death Penalty

A legal punishment where an individual is put to death by the state as a penalty for a crime.

Predictor

An element or variable that can be used to forecast or anticipate the outcomes of certain events or conditions.