Which of the Following Is a Reason Why Budgets in Multinational

question 198

Multiple Choice

Which of the following is a reason why budgets in multinational companies are not used to evaluate the firm's performance relative to its budgets?

• A) Evaluations based on budgets can be meaningless due to factors such as exchange rate risk and other volatility.
• B) Evaluations based on budgets are not possible because of cultural differences in the budgeting approach.
• C) Evaluations based on relative regional performance are considered more meaningful as compared to evaluations against budgets.
• D) Evaluations based on budgets are harder when managers use sophisticated techniques to minimize foreign currency exposure.

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Definitions:

Grandiose Thinking

A type of thinking characterized by an overestimation of one's significance or abilities, often seen in narcissistic personality disorder and manic episodes of bipolar disorder.

Optimistic Outlook

A positive mindset where an individual anticipates good outcomes and harbors hope for the future.

Distorted Thought

A cognitive process where perceptions and interpretations of reality are twisted, leading to irrational beliefs or misconceptions.

Structured Environment

An organized and controlled setting designed to support individuals in achieving specific behavioral or therapeutic goals.