Novo Limited Uses the Same Management Control System in All

question 23

Multiple Choice

Novo Limited uses the same management control system in all of its 100 facilities throughout the world on the assumption that the culture at the home office is applicable to all other locations. What principle underlies Novo's control system?

• A) Polycentrism
• B) Ethnocentrism
• C) Geocentrism
• D) Egocentrism

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Definitions:

Inelastic

Describes demand or supply that is relatively unresponsive to price changes, meaning quantity demanded or supplied changes little when price changes.

Unitary Elasticity

A situation where a one percent change in the price of a product results in a one percent change in the quantity demanded.

Federal Excise Tax

A tax imposed by the federal government on the sale of specific goods and services, such as gasoline, cigarettes, and alcohol.

Tax Revenue

Income that the government receives from taxation of individuals and businesses.