Which of the Following Is Not a Form of Direct

question 36

Multiple Choice

Which of the following is not a form of direct control?

• A)Visits by top executives to overseas affiliates or subsidiaries
• B)The staffing practices of MNCs
• C)The organizational structure of MNCs
• D)The use of financial ratios that provide insights into the unit's financial health

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Definitions:

Perfectly Competitive Firm

A company that operates in a market where there are many sellers and buyers, the product is homogeneous, and there is free entry and exit from the market.

MR (Marginal Revenue)

The surplus income obtained by selling an extra unit of a product or service.

MC (Marginal Cost)

The additional cost incurred by producing one more unit of a good or service, critical in determining the optimal level of production.

AVC (Average Variable Cost)

The cost of labor, materials, and other variable expenses divided by the quantity of output produced, excluding fixed costs.