Which of the Following Is Not Directly Considered in the Decision

question 24

Multiple Choice

Which of the following is not directly considered in the decision by a U.S.-based MNC to divest a subsidiary?

• A)the required rate of return on the subsidiary
• B)forecasted exchange rates of the subsidiary's currency relative to the dollar
• C)the initial outlay on the project
• D)the possible selling price of the project

---

Definitions:

Management Needs

The specific requirements or resources that managers need to effectively run an organization or team, including personnel, technology, and information.

Conglomerate

A large corporation composed of a number of different companies or divisions operating in varied industries.

Vertical Merger

The combination of two or more companies that operate at different levels within the same supply chain or industry.

Consolidation

The joining of two or more organizations to form a new organization.