One Argument for Why Subsidiaries Should Be Wholly Owned by the MNC

question 5

Multiple Choice

One argument for why subsidiaries should be wholly owned by the MNC parent is that parent ownership avoids a potential conflict of interest between the:

• A) parent's managers and board of directors.
• B) parent and managers at the subsidiary who are minority shareholders.
• C) parent and existing creditors.
• D) subsidiary's managers and creditors.

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