As a Domestic Firm Evolves into an MNE

question 38

Multiple Choice

As a domestic firm evolves into an MNE,

• A) reporting and communication flows change.
• B) the organizational structure becomes more simplified.
• C) it changes from a product emphasis to an international division structure.
• D) the existing organizational structure cannot be changed because of the ensuing confusion.

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Definitions:

Partnership Affairs

Refers to the internal business activities, decisions, and operations managed collectively by partners within a business partnership.

Silent Partners

Investors in a business who contribute capital but do not participate in management or daily operations, and typically their existence is not widely known.

Partnership Debts

Financial obligations or liabilities that are the shared responsibility of all partners within a partnership.

Duty To Serve

An obligation, often seen in utilities and public services, requiring companies to offer services to all customers within a given area, despite the possible financial loss involved.