One Argument for Why Subsidiaries Should Be Whollyowned by the Parent

question 42

Multiple Choice

One argument for why subsidiaries should be whollyowned by the parent is that:

• A) the potential conflict of interests between the MNC's managers and shareholders is avoided.
• B) the potential conflict of interests between the MNC's majority shareholders and minority shareholders is avoided.
• C) the potential conflict of interests between the MNC's existing creditors is avoided.
• D) the potential conflict of interests between the MNC's managers and creditors is avoided.

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Definitions:

Pack Ice

A large area of floating ice that has been driven together by wind and currents.

Arctic Warming

The phenomenon of rising temperatures in the Arctic region, leading to melting ice caps, permafrost, and changes to ecosystems.

Methane

A potent greenhouse gas with a molecular structure of one carbon atom and four hydrogen atoms, contributing to Earth's warming.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, contributing to the greenhouse effect.