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International Financial Management Study Set 1
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.
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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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