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One Argument for Why Subsidiaries Should Be Only Partlyowned by the Parent

Question 2

Multiple Choice

One argument for why subsidiaries should be only partlyowned by the parent is:


A) that the potential conflict of interests between the MNC's managers and shareholders is avoided.
B) that the potential conflict of interests between the MNC's majority shareholders and minority shareholders is avoided.
C) that the potential conflict of interests between the MNC's existing creditors is avoided.
D) to offer some protection against threats of any adverse actions by the host government.

Correct Answer:

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