The Acquisition of a Foreign Subsidiary Is Commonly Considered by MNCs

question 21

True/False

The acquisition of a foreign subsidiary is commonly considered by MNCs because the cost is less expensive than establishing a new subsidiary of the same size.

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Definitions:

Internal Auditors

Professionals employed by an organization to perform audits on the efficacy and efficiency of its operations, ensuring adherence to laws and policies.

Internal Control Elements

Components of a framework designed to ensure the effectiveness and efficiency of operations, reliable financial reporting, and compliance with laws and regulations.

Petty Cash Fund

A small amount of cash kept on hand for minor, immediate expenses.

Cash Controls

Financial procedures and policies that are implemented to manage and monitor cash transactions, to prevent theft, fraud, or errors.