Most MNCs Tend to Start Their Operations in a Particular

question 29

Multiple Choice

Most MNCs tend to start their operations in a particular region by selecting primarily from their own pool of managers.Over time, and with increasing internationalization, they tend to move to a predominantly polycentric or regiocentric policy because of ________.

• A)the lack of governmental support for hiring locals
• B)the inefficiencies of expatriate managers
• C)the poor performance of subsidiaries
• D)the greater costs of expatriate staffing

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Definitions:

Uncollectible Receivables

Debts that are deemed unrecoverable by a company after exhaustive attempts to collect them, often written off as an expense.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Net Realizable Value

The estimated selling price of inventory in the ordinary course of business minus any costs for completion, disposal, and transportation.

Bad Debt Expense

A financial accounting concept representing the amount of revenue considered uncollectible from customers or clients.