Ans:
IBUS 401 Exam 1 Questions and 100% Correct
Answers | Latest Update 2026/2027 | Graded A+.
Why are costs higher for mnc compared to domestic
Monitoring managers of distant subsidiaries in foreign countries is
more difficult, foreign subsidiary managers raised in different cultures
may not follow uniform goals, and sheer size of large Mncs can create
large agency problems
Common finance decisions include:
Ans: Whether to discontinue, pursue, expand, business in certain
country or how to finance expansion
Finance decisions are influenced by:
Ans: Marketing, management, accounting and information systems
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Agency problem
Ans: The conflict of goals between managers and shareholders
Sarbanes oxley act
Ans: Ensures a more transparent process for managers to report on the
productivity and financial condition of there firm
How SOX Improved Corporate Governance of MNCs
Established a centralized database of information, ensure that all
data is reported consistently among subsidiaries, checks for unusual
discrepancies, speed process by which all departments and subsidiaries
have access to data needed, make executives more accountable for
financial statements
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Ans:
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