A Firm That Adopts a Polycentric Staffing Policy Is Less

question 71

Multiple Choice

A firm that adopts a polycentric staffing policy is less likely to

• A)isolate foreign subsidiaries from corporate headquarters.
• B)implement an expensive staffing policy.
• C)be controlled by corporate headquarters.
• D)suffer from cultural myopia.
• E)provide growth opportunities.

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Definitions:

Cash Flows

The complete sum of cash inflows and outflows within a corporation, severely impacting its liquidity stance.

Present Value

The present-day financial assessment of a sum of money to be received later or a series of cash flows, based on a specific rate of return.

Discount Rate

In discounted cash flow analysis, the Discount Rate refers to the interest rate employed to ascertain the present value of future cash flows.

Future Cash Flows

Future cash flows refer to the estimated amounts of money to be received or paid by a business in the future, often used in investment analysis and valuation.