International Firms Have Found It Necessary to Institute Formal Global

question 65

Multiple Choice

International firms have found it necessary to institute formal global planning:

• A)to eliminate the practice of informal planning.
• B)to provide top management with a means to identify threats and opportunities worldwide.
• C)to provide consistency of action among the firm's managers.
• D)to provide top management with a means to identify threats and opportunities worldwide and to provide consistency of action among the firm's managers.
• E)to provide consistency of decision among the firm's stockholders.

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Definitions:

Consolidated Financial Statements

Financial reports that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries.

Elimination Entry

An accounting entry made in preparing consolidated financial statements to remove the effects of intercompany transactions.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Gross Margin

A financial metric indicating the difference between revenue and the cost of goods sold, divided by revenue, often expressed as a percentage.