Delta is a local example of an MNC. Image credit Nehandaradio.com

Delta is a local example of an MNC. Image credit Nehandaradio.com

ZIMSEC O Level Commerce Notes: Business Organisations: Multinational Companies

Features

  • Also known as Trans-national companies.
  • They are found in the private sector.
  • They are large limited liability businesses which have:
  • subsidiaries operating in other countries.
  • Headquarters in one parent country.
  • Subsidiaries are managed by local board of directors in each of these countries.
  • Subsidiaries pay a royalty fee for the use of a design or formula.
  • The royalty is paid based on the number of units sold.
  • Subsidiary manufactures are licenced to produce goods which adhere to the specified original design.
  • They have large amounts of capital.
  • Bring advanced technology/machinery to the host countries.
  • The subsidiaries remit back some of the profits to the parent company.
  • There is centralised control at the headquarters.

To access more topics go to the Commerce Notes page.

- See latest Zimbabwe grocery prices -

Deals

SEE LATEST SUPERMARKET PRICES, SHOP FOR GROCERIES VIA WHATSAPP
SEE PRICES & NEWS
We publish the latest grocery prices from Zimbabwean supermarkets. We also deliver groceries online

Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, click here to enter your query.