Oliver Williamson Argument That the Multidivisional Corporation Resolves the Agency

question 23

True/False

Oliver Williamson argument that the multidivisional corporation resolves the agency problem in large public corporation has not been verified in practice.

---

Definitions:

Selective optimization

A strategy of maximizing performance in certain areas while compensating for declines or limitations in others.

Compensation

A process that contributes to successful development. When a loss of some kind prevents the use of one means to an end, the individual finds another means.

Well-being

A general state of health, happiness, and satisfaction with one’s life.

Environmental mastery

The ability to effectively manage and manipulate one's surrounding environment to meet personal needs and goals.