Question

What are some of the issues that arise in evaluating and maintaining control over foreign operations? Multiple Choice

A. Deciding whether to evaluate performance on the basis of foreign currency or parent company reporting currency Management of new company is difficult

B. Deciding whether to factor out of the performance measure items over which the foreign operation’s manager has no control

C. Deciding whether to evaluate performance on the basis of foreign currency or parent company reporting currency and

D. whether to factor out of the performance measure items over which the foreign operation’s manager has no control

Answer 1

B. Deciding whether to factor out of the performance measure items over which the foreign operation’s manager has no control

C. Deciding whether to evaluate performance on the basis of foreign currency or parent company reporting currency and

Step-by-step explanation:

Foreign operations refer to an entity that could be in terms of an associate, subsidiary, jointly controlled in which the activities are based in a country irrespective of the entity i.e. reported

Therefore in the given case, the issued can be with the performance measures that have no control and it should depend upon the parent company in which the currency is reported

Hence, the correct option is B and C