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Private, Public and Global Enterprises — Business Studies STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceBusiness StudiesPrivate, Public and Global Enterprises1 Mark
MCQ
Centralised control in MNC’s implies control exercised by:
  • A
    Branches.
  • B
    Subsidiaries.
  • ✓
    Headquarters.
  • D
    Parliament.
✓

Answer

Correct option: C.
Headquarters.
Explanation:
They have their headquaters in their home country and exercise control over all branches and subsidiaries. However, this control is limited to the broad policy framework of the parent company. There is no interference in day-to-day operations.

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