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  1. Topics
  2. Business
  3. International Financial Management Study Set 1
  4. Quiz 1: Multinational Financial Management: An Overview

61

Question 61
True False

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

Related questions
Q 62
62.A decentralized management style, where subsidiary managers make the relevant decisions regarding their subsidiary, may result in better decision making, as subsidiary managers are generally better informed about their subsidiary's operations.
Q 63
63.U.S.-based MNCs are typically not monitored by mutual funds and pension funds, as these institutions rarely hold stock in MNCs.
Q 64
64.The Sarbanes-Oxley Act ensures a more transparent process for managers to report on the productivity and financial condition of their firm.
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