Which of the Following Statements Holds True for a Centralized

Multiple Choice

Which of the following statements holds true for a centralized financial organization structure?

A) The government of the host country in which the subsidiary is located makes financing or investment decisions for the organization, taking advantage of local knowledge and moving quickly to respond to opportunities or uncertainties.
B) Multinational firms choose a centralized financial organization structure due to variations in language, consumers, cultures, business practices, and government rules, laws, and regulations among different countries.
C) Subsidiaries or regions make financing or investment decisions for their region, taking advantage of local knowledge and moving quickly to respond to opportunities or uncertainties.
D) The financial institutions which fund the organization set guidelines for the headquarters as well as the subsidiaries to follow, pool funds, leverage the benefits of scale for investment and borrowing, and hire knowledgeable staff to make the most effective firm-wide decisions.
E) All finance decisions are performed at headquarters, which sets guidelines for subsidiaries to follow, pools funds, leverages the benefits of scale for investment and borrowing, and hires knowledgeable staff to make the most effective firm-wide decisions.