Which of the Following Statements Is Most Correct

Multiple Choice

Which of the following statements is most correct?

A) Globalization affects domestic companies if they outsource elements of their production or back-office operations, or if they sell significant amounts of goods or services abroad; however, if they do not engage in these activities they are largely immune from the effects of globalization.
B) Because foreign markets may not be in the same stage of the product life cycle as the home market, and because the economies of other countries may be in different phases of the business cycle, companies that operate in several different countries may be able to reduce their risk through diversification of their operations globally.
C) Stockholder wealth maximization as the primary objective of the firm ignores the impact of corporate decisions on groups such as employees, consumers, and society in general because decisions that increase profits almost always reduce the benefits going to the other groups.
D) The system of corporate governance employed by companies in a given country defines the financial and legal framework for regulating the relationship between a company's management and its creditors.
E) Globalization is largely regulated by treaties and other multilateral agreements under the direction of the United Nations' project on transnational corporations.