Agency costs faced by MNCs may be larger than those faced by purely domestic firms because:
- monitoring of managers located in foreign countries is more difficult AND foreign subsidiary managers raised in different cultures may not follow uniform goals.
- monitoring of managers located in foreign countries is more difficult.
- .MNCs are relatively large.
- foreign subsidiary managers raised in different cultures may not follow uniform goals.
<h3>What are multinational corporations?</h3>
Multinational corporations can be regarded as one that have the license to operates in more than one country at a time.
Agency costs faced by MNCs may be larger than those faced by purely domestic firms due to how foreign subsidiary managers raised in different cultures may not follow uniform goals.
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If an organizational manual exists, a description of the division of work and the position shown on the organization chart will be given in the manual or will be located on the company's intranet.
A) True
Answer and Explanation:
A. Toothpaste brand: Toothpaste is a commonly used, inexpensive, and very popular product. These decisions are governed mainly by the reference group such as family , friends or primary group with whom a student has regular face to face experiences. Hence the purchase decision is affected by a low degree of comparison community.
B. Buying a hybrid car: A hybrid car is sometimes described as expensive and luxury products. It's moreover a non-necessity commodity for a college student. These decisions are therefore usually affected by secondary community. And a high degree of control in the comparison community will only inspire a student to buy a car.
C. Buying cereal for breakfast: This is a simple requirement of a lifetime. Therefore, even without consulting any reference group a student can buy such product. Often such transactions are rules by family group control. So it needs a low degree of control.
D. Becoming a vegetarian: It takes a high degree of influence and motivation to become a vegetarian.
Thus the aspirational group influences a student. So they opt for vegetarianism to become part of such a community. Such decision taking involves a high degree of control.
E. Option of a computer tablet like the iPod: these products are a luxury commodity sold at regular prices. Typically refer to their families , friends, magazines before making a purchase student to get an idea about the output and price of these products. These goods are the weak product with a strong brand and a strong purchase is controlled by a strong reference community impact.
Answer:
NPV = -$132,193.77
Explanation:
best case NPV:
price per unit (+4%) = $48.88
sales per year (+4%) = 32,240
variable cost per unit (-2%) = $22.54
fixed costs (-2%) = $826,042
depreciation expense per year = $227,000 / 4 = $56,750
contribution margin per unit = $26.34
23% tax rate
discount rate = 11.5%
initial outlay = $227,000
net cash flows = {[($26.34 x 32,240) - $826,042 - $56,750] x 77%} + $56,750 = $30,885.392
NPV = -$132,193.77
Answer:
$125
Explanation:
Time value = Premium - Intrinsic value
Premium. = 2 or $200 i.e 2×100
Intrinsic value = 75
= $200 - $75
= $125