Murphy Enterprises Recently Acquired a Controlling Interest in Mexico's Leading

question 126

Multiple Choice

Murphy Enterprises recently acquired a controlling interest in Mexico's leading clothing retailer.Murphy plans to open additional retail stores in the next three years.Some of Murphy's top executives advocate the idea of transferring U.S.managers to Mexico to oversee the construction and opening of the new stores.Another group of Murphy executives believe that host-country nationals should manage the project.Which of the following best supports the decision to use a polycentric staffing approach?

• A) Murphy's HR department has been unable to locate qualified Mexican managers.
• B) Murphy wants to establish that the corporation is fully committed to Mexico.
• C) HR managers at Murphy rely on selection tests to find competent workers.
• D) Most Murphy managers have international work or travel experience.

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Zero-Based Budgeting

A budgeting method where all expenses must be justified for each new period, starting from a "zero base," rather than just adjusting previous budgets.

Cash Budget

An estimate of cash inflows and outflows over a specific period, used to manage and plan for cash needs.

Minimum Cash Balance

The lowest amount of cash that a company aims to maintain in its accounts to adequately meet its operational and financial obligations.