Which of the Following Is Least Likely to Pose a Problem

question 21

Multiple Choice

Which of the following is least likely to pose a problem in terms of MNCs achieving legitimacy?

• A) differences in lifestyles of the managers of the two countries
• B) different monetary currencies of the two countries
• C) differences in interests of the MNC and the host country
• D) majority ownership of MNCs by locals

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Definitions:

NCI Indirect Ownership Interest

Refers to the portion of equity in a subsidiary attributed to non-controlling interests, based on their indirect ownership stake.

Indirect Ownership Interests

Refers to a situation where an entity owns an interest in another entity through an intermediary rather than directly.

Tiered Corporate Group

A hierarchical structure where a parent company controls subsidiary companies, which in turn may control their own subsidiaries, creating multiple levels of entity relationships.

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership of a majority of voting rights.