For an MNC, Agency Costs Are Typically

question 16

Multiple Choice

For an MNC, agency costs are typically:

• A) nonexistent.
• B) larger than agency costs of a small purely domestic firm.
• C) smaller than agency costs of a small purely domestic firm.
• D) the same as agency costs of a small purely domestic firm.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.