In January 2009,Wal-Mart Acquired a Controlling Interest in Chile's Leading

question 15

Multiple Choice

In January 2009,Wal-Mart acquired a controlling interest in Chile's leading food retailer.Since then,Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Wal-Mart is planning to open additional stores in Chile over the next five years.Wal-Mart's top executives are considering the idea of transferring U.S.managers to Chile to oversee the construction and establishment of the new stores. Which of the following,if true,supports the argument that locals should be hired to fill management positions in Chile?

• A) People from Chile accept the idea that power is unequally distributed in society.
• B) Chile has a high percentage of younger workers with college degrees.
• C) Managers in Chile are expected to keep their distance from subordinates.
• D) Chile has experienced an increase in foreign direct investment over the last five years.
• E) Chileans expect managers and subordinates to interact in a formal manner.

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Definitions:

Machine-Hours

A measure of production time using machinery, often used as a basis for allocating manufacturing overhead to products.

Overhead Cost

The indirect costs that are not directly tied to production or sales, such as rent, utilities, and office expenses.

Activity-Based Costing

A costing methodology that assigns overhead costs to products based on their consumption of activities.

Machine-Hours

A measure of production or work time, referring to the total hours a machine is operated in the performance of its tasks.