The parent of an MNC can implement compensation plans that directly reward the subsidiary managers for enhancing the value of the MNC.

Question

Quizplus · Accepted Answer

This statement is true. The parent company of an MNC can implement compensation plans for their subsidiary managers that directly incentivize them to increase the overall value of the MNC. This helps align the interests of the subsidiary with those of the parent company, and promotes collaboration and coherence across the multinational entity.

The Parent of an MNC Can Implement Compensation Plans That