Agency Costs Faced by MNCs May Be Larger Than Those

Multiple Choice

Agency costs faced by MNCs may be larger than those faced by purely domestic firms because:

A) monitoring of managers located in foreign countries is more difficult.
B) foreign subsidiary managers raised in different cultures may not follow uniform goals.
C) MNCs are relatively large.
D) All of these are correct.
E) monitoring of managers located in foreign countries is more difficult AND foreign subsidiary managers raised in different cultures may not follow uniform goals.