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

Question

Quizplus · Accepted Answer

It is most likely to be the currency of the parent company's home country as this is the currency that the parent company will be most familiar with and will use to evaluate the overall performance of the multinational corporation. Using the local currency of the subsidiary may not be the best option as fluctuations in exchange rates can distort the true performance of the subsidiary. Using euros may also not be appropriate if not all the subsidiaries operate within the eurozone.

If Only One Currency Is Used for Evaluating Subsidiary Performance