Question

Which of the following is not one of the more common methods used by MNCs to improve their internal control process?

a. requiring executives to forecast future exchange rates
b. establishing a centralized database of information
c. speeding the process by which all departments and all subsidiaries have access to the data that they need
d. ensuring that all data are reported consistently among subsidiaries

Answer 1

Requiring executives to forecast future exchange rates is not a common method used by Multinational Corporations (MNCs) for improving internal control processes, whereas establishing centralized databases, speeding data access, and ensuring consistent reporting are common methods.

Step-by-step explanation:

The student is asking which of the following methods is not commonly used by Multinational Corporations (MNCs) to improve their internal control process. The common methods typically include establishing a centralized database of information, speeding up the access to data for all departments and subsidiaries, and ensuring consistent data reporting among subsidiaries.

The one method that is not common is requiring executives to forecast future exchange rates as part of the internal control process. This activity relates to financial strategy rather than the systematic control of operational processes.

The correct answer is a. requiring executives to forecast future exchange rates. This option is not one of the more common methods used by multinational corporations (MNCs) to improve their internal control process. MNCs typically focus on establishing a centralized database of information, speeding up access to necessary data, and ensuring consistent reporting among subsidiaries.