Final answer:
To reduce agency problems for an MNC, stock options, the threat of hostile takeovers, and investor monitoring are effective measures. For the Darkroom Windowshade Company, no two investors alone hold a majority; therefore, a coalition of several investors would be required to change management.
Step-by-step explanation:
The elements that could reduce agency problems for a Multinational Corporation (MNC) are: stock options as managerial compensation, the threat of a hostile takeover, and investor monitoring. Providing stock options aligns the interests of the managers with those of the shareholders since managers benefit from a rising stock price. The threat of a hostile takeover can discourage management from acting against shareholders' interests due to the risk of being replaced. Lastly, active monitoring by investors can help to ensure that management decisions are in the best interest of shareholders.
Regarding the minimum number of investors needed to change a company's top management, it depends on the number of shares each investor holds and the total number of shares. For the Darkroom Windowshade Company, which has 100,000 shares outstanding, more than 50% of the shares would need to be voted to change the management. Investors 1 and 2, holding 20,000 and 18,000 shares respectively, would collectively control 38,000 shares, which is less than the majority required, so they cannot be certain of always getting their way.