In general, the greater the distance between the home office of a global company and its branch, the ________.
A) more formalized the controls
B) less formalized the controls
C) more automated the controls
D) less automated the controls

Question

Quizplus · Accepted Answer

A) Though branches of global companies like Seven-Eleven do use automated controls to keep tabs on such things as inventory, there is no predictable relationship between distance and automation, so both choices regarding automation are incorrect responses. There is a clear relationship between distance and the formalization of control-longer distances tend to require more formal control mechanisms-making "more formalized" the correct response and eliminating "less formalized."

In General, the Greater the Distance Between the Home Office