Which of the Following Is Correct About a Decentralized Management

question 13

Multiple Choice

Which of the following is correct about a decentralized management style of the financial management over foreign operations?

• A) There is no monitoring of subsidiary managers, since an MNC's foreign subsidiaries are separate legal entities.
• B) MNCs allow subsidiary managers to make the key decisions about their respective operations, but the decisions may be monitored by the parent's management.
• C) Subsidiary foreign managers respond to directive from the top of the parent's management.
• D) Financial managers at the parent company make most of the key decisions.

Understand the relationship between target market selection and positioning strategy.

Identify the components of the marketing mix and their influence on marketing strategy.

Analyze the effect of increased advertising on a company's profitability.

Comprehend basic financial metrics used in evaluating business operations.

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Definitions:

Industrial Union

A labor union organizing method where all workers in the same industry are organized into the same union, regardless of differences in skills.

Craft Union

A labor union of workers who practice the same craft or trade, aimed at securing better wages, hours, and working conditions.

Trade Association

An organization founded and funded by businesses that operate in a specific industry to promote and protect their common interests.

Permanent Replacement Workers

Employees hired on a permanent basis to substitute for workers who are on strike, ensuring continued operations.