Question
8) Which of the following is a drawback of decentralizing a multinational company? A) It may lead to an increase in bureaucracy. B) It may
8) Which of the following is a drawback of decentralizing a multinational company? A) It may lead to an increase in bureaucracy. B) It may lead to increased exchange rate risk. C) It creates less responsiveness to the needs of a subunit's customers, suppliers, and employees. It may result in lack of control and results in increasing risk. 7) To reduce the excessive focus of subunit managers on their own subunits, many companies compensate subunit managers on the basis of A) both the operating income earned by their respective subunits and the company as a whole B) only the investing income earned by their respective subunits C) both the investing income earned by their respective subunits and the company as a whole D) both the net income and earned by their respective subunits and the company as a whole
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