One Argument for Why Subsidiaries Should Be Allowed to Issue

Multiple Choice

One argument for why subsidiaries should be allowed to issue their own stock is that:​

A) ​it prevents a potential conflict of interests between the MNC's managers and shareholders.
B) ​it prevents a potential conflict of interests between the MNC's majority shareholders and minority shareholders.
C) ​it prevents a potential conflict of interests between the MNC's existing creditors.
D) ​having local investors as minority shareholders may offer some protection against adverse actions by the local government.