Why Is Management Control Particularly Complex in Decentralized Multinational Organizations

question 57

Multiple Choice

Why is management control particularly complex in decentralized multinational organizations?

• A) Managers abroad are not as well-trained as managers of domestic operations.
• B) Decision-making authority is not delegated to the local managers of foreign operations.
• C) Managers of foreign operations may be motivated by local goals rather than parent's goals.
• D) Financial risks are always higher for the local managers of foreign operations than for managers of domestic operations.

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Definitions:

Donee Beneficiary

A third party beneficiary to a contract who receives a benefit from the contract as a gift.

Promisor

The person or party in a contract who has made a promise to perform or refrain from performing a certain act.

Prohibiting Assignment

Prohibiting Assignment involves clauses in contracts that restrict or prevent a party from transferring their rights or obligations to another party.

Valid Assignment

is the effective transfer of rights or obligations that meets all legal requirements, ensuring enforceability.