Which of the Following Could Reduce Agency Problems for an MNC

question 68

Multiple Choice

Which of the following could reduce agency problems for an MNC?

• A) stock options as managerial compensation
• B) hostile takeover threat
• C) investor monitoring
• D) All of these are forms of corporate control that could reduce agency problems for an MNC.

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Definitions:

Production Lines

The arrangement or sequence of machinery and equipment in a factory where a product is assembled progressively through various stages of production.

Short-Run Marginal Cost

The increase in cost incurred from producing one additional unit of a good or service in the short term, when some inputs or resources are fixed.

Swing Shift

A work shift that typically occurs in the afternoon and evening hours, bridging the gap between day and night shifts.

Time And A Half

An overtime pay rate that is 1.5 times an employee's normal hourly rate, typically paid for work done beyond standard working hours.