Which of the Following Statements Is True in the Case

question 71

Multiple Choice

Which of the following statements is true in the case of budgeting for multinational companies?

• A) While budgeting for multinational companies, managers consider difference in tax statutes as an uncontrollable factor.
• B) While budgeting for multinational companies, managers do not account for foreign exchange fluctuations as the operating profits are reported in different currencies.
• C) While budgeting for multinational companies, managers must be aware that budgets will not be used for evaluating performance.
• D) While budgeting for multinational companies, managers are not concerned about the domestic factors of the different countries in which they operate.

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Definitions:

Multivariate Approach

A statistical approach that involves observation and analysis of more than one statistical outcome variable at a time.

Factor Analysis

An analytical approach employed to account for the variability in observed, interconnected variables through fewer, unseen variables referred to as factors.

Bivariate Approach

A statistical or research method that involves the analysis of two variables to determine the empirical relationship between them.

Personality Dimensions

Fundamental attributes that capture the various aspects of a person's character and behavior, such as introversion/extraversion or openness to experience.