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One of the most prevalent factors conflicting with the realization of the goal of an MNC is the existence of agency problems.

A) True
B) False

User Axlotl
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Final answer:

True. Agency problems, which involve conflicts of interest between management and shareholders, are a significant factor that can hinder the goals of multinational corporations.

Step-by-step explanation:

Agency problems within multinational corporations (MNCs) arise when there is a conflict of interest between the management (agents) and the shareholders (principals). These problems are indeed a prevalent issue facing MNCs and can impact the realization of the corporation's goals.

This is because managers may pursue personal interests that are not aligned with the shareholders' objectives, potentially leading to decisions that are not in the best interests of the company. Moreover, agency problems are exacerbated in MNCs due to the complexities of operating across different countries with diverse legal, cultural, and economic environments, which can make oversight more challenging.

User Jeevitha G
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