Which of the following definitions is most accurate for a multinational corporation?
A)a company that maintains significant operations in at least two countries
B)a company that maintains significant operations in at least two countries but is managed from a base in the home country
C)a company that maintains significant operations in at least two countries and has multiple home bases
D)a company that maintains significant operations in at least two countries but decentralizes management to each country
E)a company that maintains significant operations in at least two countries but organizes by industry to reduce geographical barriers

Question

Quizplus · Accepted Answer

A multinational corporation is a company that operates in multiple countries, but is managed from a base in its home country. Option A is very similar, but it is not a requirement for a multinational corporation to have significant operations in multiple countries; it only needs to operate in more than one country. Option C is incorrect because a multinational corporation usually has one primary home base. Option D is incorrect because a multinational corporation may or may not decentralize its management, depending on the company's structure. Option E is incorrect because organizing by industry has nothing to do with being a multinational corporation.

Which of the Following Definitions Is Most Accurate for a Multinational