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:

Short-run Supply Curve

A graphical representation showing the quantity of goods a firm is willing and able to supply at different prices over a short period, assuming some inputs are fixed.

Industry Supply

The total output of goods or services available from a particular industry at a given price level and time.

Operate

To function or run, typically referring to the way machinery, systems, or businesses work.

Shut Down

Cessation of a firm’s operations as output falls to zero.