Since each subsidiary may be more concerned with its own operations than with the overall operations of the MNC, a centralized management group may need to monitor the parent-subsidiary and intersubsidiary cash flows.

Question

Quizplus · Accepted Answer

This statement is true. Since subsidiaries may prioritize their own operations, a centralized management group may need to monitor cash flows to ensure overall financial health and coordination among subsidiaries.

Since Each Subsidiary May Be More Concerned with Its Own