Which of the following statements is TRUE?
A)The economic, legal, political, social, and cultural environments are always similar across countries.
B)Governments in some countries may impose controls and limit selling prices of a company's products.
C)The availability of materials and skilled labour does not normally differ across countries.
D)There are no difficulties in comparing performance of divisions across different countries.
E)Nonfinancial performance measures should not be used when comparing performance of divisions in different countries.

Question

Quizplus · Accepted Answer

Governments in some countries may impose controls and limit selling prices of a company's products. This can affect a company's profitability and competitiveness in that country. The other statements are not true. The economic, legal, political, social, and cultural environments vary greatly across countries, the availability of materials and skilled labor can differ significantly, comparing performance of divisions across different countries can be challenging due to differences in currency, accounting practices, and business culture, and nonfinancial performance measures can be useful when comparing performance of divisions in different countries as some aspects of performance may not be easily quantifiable in financial terms.

Which of the Following Statements Is TRUE