Which of the Following Is Not a Reason Why a Parent

question 21

Multiple Choice

Which of the following is not a reason why a parent company would prefer to be involved with an NCI?

• A)Reduction on ownership risk
• B)Potential for increased share dilution
• C)Maintenance of a market for the subsidiary's shares
• D)Potential links to resources such as government support and management expertise

---

Definitions:

Collective Agreement

A written contract negotiated between an employer and a union representing employees, outlining terms of employment, working conditions, and wages.

Information Barrier

Obstacles that prevent the free flow of information within an organization, often leading to inefficiencies or wrong decision-making.

Performance Metrics

Quantifiable measures used to evaluate the success of an individual, team, or organization in achieving objectives.

Effective Performance

Refers to the degree to which an individual or organization meets its objectives or goals efficiently and effectively.