Question

How can the agency problem between managers and owners be mitigated in a MNC? I. Instituting...

How can the agency problem between managers and owners be mitigated in a MNC?

I. Instituting Board of directors
II. Using incentive contracts
III. Having debt in the firm
IV. The Market for Corporate Control
V. Having Diffused ownership
VI. Maximizing Profit and Minimizing Costs

Group of answer choices

A)I, II, III, IV, VI only

B)I, II, III, IV, V

C)All of the options

D)I, II, III, IV

E)II, III, IV,

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Answer #1

D)I, II, III, IV

V is incorrect because diffused ownership increases agency cost
VI is incorrect because it is not related to agency cost

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