Which of the Following Is Not True About Budgeting in Multinational

question 47

Multiple Choice

Which of the following is not true about budgeting in multinational companies?

• A)Managers reduce the possible negative impact on performance caused by unfavorable exchange rate movements.
• B)Managers need to understand the political,legal,and economic movements in the different countries that engage in corporate operations.
• C)Countries that have high annual inflation rates have sharp declines in the value of the currency.
• D)The purpose of budgeting in multinational companies is
• E)Managers do not need to consider differences in tax regimes because the company transfers goods and services across the many countries in which it operates.

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Definitions:

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Percentage Point

A unit for the arithmetic difference between two percentages.

Horizontal Axis

The horizontal number line of a graph along which values of the x-variable are measured; also referred to as the x-axis.

Dependent Variable

The determined variable in a causal relationship.