There Is Low Interdependence, Performance Ambiguity, and Costs of Control

question 89

Multiple Choice

There is low interdependence, performance ambiguity, and costs of control in firms pursuing a(n) _____.

• A) localization strategy
• B) international strategy
• C) transnational strategy
• D) global strategy

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Definitions:

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee without having control or joint control over those policies.

Presumptive Test

A preliminary test based on presumptions established by criteria or evidence that suggests or implies a certain condition or outcome.

Voting Power

The right of shareholders to vote on corporate matters, usually proportional to the number of shares they hold.