An MNC May Be More Exposed to Agency Problems If

question 75

Multiple Choice

An MNC may be more exposed to agency problems if most of its shares are held by:

• A)a few mutual funds.
• B)a widely dispersed set of individual investors.
• C)a few pension funds.
• D)all of the above would prevent agency problems.

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Definitions:

Leadership

The ability or act of guiding or directing a group toward achieving a common goal.

Cooperativeness

A personality trait that reflects how much a person is willing to work together with others towards common goals or interests.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, irritability, and vulnerability to stress.

Decrease

A reduction in size, quantity, or intensity of something.