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One Argument for Why Subsidiaries Should Be Whollyowned by the Parent

Question 42

Multiple Choice

One argument for why subsidiaries should be whollyowned by the parent is that:


A) the potential conflict of interests between the MNC's managers and shareholders is avoided.
B) the potential conflict of interests between the MNC's majority shareholders and minority shareholders is avoided.
C) the potential conflict of interests between the MNC's existing creditors is avoided.
D) the potential conflict of interests between the MNC's managers and creditors is avoided.

Correct Answer:

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