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.

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Definitions:

Japanese Yen

The official currency of Japan, represented symbolically as ¥ and known as one of the major currencies traded in the world.

South Korean Won

The official currency of South Korea, symbolized as KRW.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by very low unemployment.

Depreciates

Describes a decrease in value over time, often used in reference to currency or physical assets.