Why subsidiaries should be allowed to issue their own stock

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Reference no: EM131561040

One argument for why subsidiaries should be allowed to issue their own stock is that: a. it prevents a potential conflict of interests between the MNC's managers and shareholders. b. it prevents a potential conflict of interests between the MNC's majority shareholders and minority shareholders. c. it prevents a potential conflict of interests between the MNC's existing creditors. d. having local investors as minority shareholders may offer some protection against adverse actions by the local government.

Reference no: EM131561040

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