Which of the following is not a way in which agency problems can be reduced through corporate control?
A) Executive compensation
B) Threat of hostile takeover
C) Acquisition of a foreign subsidiary
D) Monitoring by large shareholders

Question

Quizplus · Accepted Answer

Acquisition of a foreign subsidiary does not directly address agency problems, which typically involve conflicts of interest between management and shareholders. The other options are mechanisms that can align management's interests with those of shareholders or exert pressure on management to act in shareholders' best interests.

Which of the Following Is Not a Way in Which