One Argument for Why Subsidiaries Should Be Only Partlyowned by the Parent

question 2

Multiple Choice

One argument for why subsidiaries should be only partlyowned by the parent is:

• A) that the potential conflict of interests between the MNC's managers and shareholders is avoided.
• B) that the potential conflict of interests between the MNC's majority shareholders and minority shareholders is avoided.
• C) that the potential conflict of interests between the MNC's existing creditors is avoided.
• D) to offer some protection against threats of any adverse actions by the host government.

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Definitions:

Double Blind

A study or experiment design in which neither the participants nor the experimenters know which participants are receiving the test treatment versus the control, to prevent bias.

Cholesterol Level

The concentration of cholesterol in the blood, measured to assess an individual's risk of developing heart disease.

High Dose

A high dose refers to a quantity of a substance, such as medication or radiation, that is larger than the standard or recommended amount.

Diastolic Blood Pressure

The force exerted by the blood against the arterial walls during the interval when the heart is not contracting.