Which of the Following Could Reduce Agency Problems for an MNC

question 3

Multiple Choice

Which of the following could reduce agency problems for an MNC?

• A) stock options as managerial compensation.
• B) hostile takeover threat.
• C) investor monitoring.
• D) all of the above are forms of corporate control that could reduce agency problems for an MNC.

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged, representing a state of optimal strategy among all participants.

Mixed Strategies

In game theory, strategies involving randomizing choices to make opponents indifferent between their own possible actions.

Maximin Strategy

Strategy that maximizes the minimum gain that can be earned.

Maximin Strategy

A decision-making strategy in which the decision-maker aims to maximize the minimum gain or minimize the maximum loss, often used in game theory and decision theory.