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Which one of the following is a definition of agency cost?
Which one of the following is a definition of agency cost?
- The costs incurred if the manager uses the company's resources for his own benefit (correct)
- The costs of techniques that shareholders use to prevent the manager from prioritizing his interests over the shareholders'
- The costs arising from the different cultures of foreign subsidiary managers
- The costs associated with having subsidiaries in foreign countries
Which one of the following factors contributes to higher agency costs for multinational corporations (MNCs)?
Which one of the following factors contributes to higher agency costs for multinational corporations (MNCs)?
- Inconsistency in MNC goal (correct)
- Sheer size of larger MNC
- Different cultures of foreign subsidiary managers
- Distance for subsidiaries in foreign countries
What is one way to solve the agency problem in MNCs?
What is one way to solve the agency problem in MNCs?
- Parent control: Clear communication and oversight of subsidiary decisions (correct)
- Corporate control: Maximizing the values of respective subsidiaries
- Corporate control: Investor monitoring
- Parent control: Reducing the power of subsidiary managers
Which of the following is NOT a factor contributing to higher agency costs for MNCs?
Which of the following is NOT a factor contributing to higher agency costs for MNCs?
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What are agency costs?
What are agency costs?
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Which of the following is NOT a factor contributing to higher agency costs for multinational corporations (MNCs)?
Which of the following is NOT a factor contributing to higher agency costs for multinational corporations (MNCs)?
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What is one technique that shareholders can use to prevent the manager from prioritizing their own interests over the shareholders' interests?
What is one technique that shareholders can use to prevent the manager from prioritizing their own interests over the shareholders' interests?
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What is the definition of agency cost?
What is the definition of agency cost?
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What are some factors that contribute to higher agency costs for MNCs?
What are some factors that contribute to higher agency costs for MNCs?
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What is one way to solve the agency problem in MNCs?
What is one way to solve the agency problem in MNCs?
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