For a Multinational Firm Using a Decentralized Management Style,the Subsidiary

question 36

Multiple Choice

For a multinational firm using a decentralized management style,the subsidiary would be expected:

• A) To focus on meeting goals set by the parent firm.
• B) To make most of the financing and production decisions.
• C) To allow the parent firm move resources to maximize total firm value.
• D) To operate efficiently under directives from the parent firm.

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Definitions:

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Accounting Major

A field of study focused on the principles and techniques of preparing, maintaining, and analyzing financial records and transactions.

Algorithmic

Pertaining to or using a set of rules to be followed in calculations or other problem-solving operations, especially by a computer.

Heuristic

A shortcut (rule of thumb or informal guideline) used to reduce the amount of thinking that is needed to make decisions.