If only one currency is used for evaluating subsidiary performance in a multinational corporation,what currency is it most likely to be?

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When a multinational corporation uses only one currency to evaluate subsidiary performance, it is most likely to be the currency of the parent company's home country. This is because the parent company's financial statements and reports are typically prepared in their home currency, and it is the currency that is most familiar and commonly used by management. Using the home currency also facilitates consolidation of financial statements and comparison of performance across subsidiaries. While using the local currency of the subsidiary may also be an option, this can be more complex and may require additional resources to convert the data into a common currency for evaluation. Using euros is less likely, as not all multinational corporations operate in countries that use the euro, and using no currency would not allow for effective evaluation of performance.

If Only One Currency Is Used for Evaluating Subsidiary Performance