One argument for why subsidiaries should be wholly-owned by the parent is that the potential conflict of interests between the MNC's ____ is avoided.
A) managers and shareholders
B) majority shareholders and minority shareholders
C) existing creditors
D) managers and creditors

Question

Quizplus · Accepted Answer

Wholly owning a subsidiary avoids conflicts between majority and minority shareholders, as there are no minority shareholders to have differing interests.

One Argument for Why Subsidiaries Should Be Wholly-Owned by the Parent