For a multinational firm using a decentralized management style,the subsidiary would be expected:
A) To focus on meeting goals set by the parent firm.
B) To make most of the financing and production decisions.
C) To allow the parent firm move resources to maximize total firm value.
D) To operate efficiently under directives from the parent firm.

Question

Quizplus · Accepted Answer

A decentralized management style means that decision-making is distributed among different levels of the organization, with each level responsible for its own decisions. In this case, the subsidiary would be expected to make most of the financing and production decisions, rather than relying on directives from the parent firm. However, the subsidiary would still be expected to operate efficiently and in line with the overall goals of the parent firm.

For a Multinational Firm Using a Decentralized Management Style,the Subsidiary