If managers of foreign subsidiaries make decisions that maximize the values of their respective subsidiaries, they automatically maximize the value of the entire corporation.

Question

Quizplus · Accepted Answer

While individual subsidiary performance is important, managers must also consider the impact of their decisions on the overall corporation. Maximizing the value of a single subsidiary may not necessarily lead to the highest value for the entire corporation.

If Managers of Foreign Subsidiaries Make Decisions That Maximize the Values