Question

The goal of an mnc is to maximize the ________.

a. value of the mnc has as a whole

b. value of each individual subsidiary

c. earnings of each individual subsidiary

d. earnings of the mnc as a whole

Answer 1

Answer: Option C

Step-by-step explanation: In simple words, the goal of an MNC is to maximize the wealth of its shareholders which can be achieved only when the value of that company increases overall.

The increase in value of a subsidiary will only increase the benefit of the stakeholders of that subsidiary while earnings is considered as a temporary benefit in corporate world.

Hence from the above we can conclude that the correct option is C.