Question

The goal of a multinational corporation (MNC) is

a. The establishment of subsidiaries in any country where operations would provide a return over and above the cost of capital, even if better projects are available domestically.
b. The maximization of shareholder wealth.
c. The minimization of taxes remitted from foreign subsidiaries.
d. The maximization of social benefits resulting from actions such as the employment of foreign managers.

Answer 1

The goal of a multinational corporation (MNC) is the maximization of shareholder wealth. MNCs prioritize profit over the social benefits and often use their power and wealth to influence countries to pass laws favorable to their businesses.

Step-by-step explanation:

The goal of a multinational corporation (MNC) is the maximization of shareholder wealth. This means that the company aims to increase the value of its shareholders' investment through profitable operations and effective decision-making. While there may be secondary objectives, such as the establishment of subsidiaries for strategic reasons or the consideration of social and environmental responsibilities, the overarching goal is to enhance shareholder wealth. MNCs are corporate business entities that have operations in multiple countries. They prioritize profit over social benefits and often use their power and wealth to influence countries to pass laws favorable to their businesses.

The primary goal of a multinational corporation (MNC) is typically the maximization of shareholder wealth. This means that the company aims to increase the value of its shareholders' investment through profitable operations and effective decision-making. While there may be secondary objectives, such as the establishment of subsidiaries for strategic reasons or the consideration of social and environmental responsibilities, the overarching goal is to enhance shareholder wealth. This is a fundamental principle of financial management for MNCs and other corporations.