Which of the Following Is the Basic Difference Between Multidomestic

question 81

Multiple Choice

Which of the following is the basic difference between multidomestic corporations and global companies?

• A)Multidomestic corporations typically do business with more countries than global companies.
• B)Multidomestic corporations are run by global companies but must be owned by a local,national company.
• C)Multidomestic corporations decentralize management to the local country,while global companies centralize management in the home country.
• D)Multidomestic corporations reflect an ethnocentric attitude,while global companies reflect a polycentric attitude.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

The average value of all assets owned by a company over a period, typically calculated by combining the beginning and ending values for a period and dividing by two.

Asset Turnover

A ratio that determines the competence of an organization in using its assets to generate income from sales.

Book Value

The net value of a company's assets minus its liabilities, often used to assess its equity value.