The goal of a multinational corporation (MNC) is
A) The minimization of taxes remitted from foreign subsidiaries.
B) 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.
C) The maximization of shareholder wealth.
D) The maximization of social benefits resulting from actions such as the employment of foreign managers.

Question

Quizplus · Accepted Answer

The maximization of shareholder wealth is the primary objective of a multinational corporation. While minimizing taxes and expanding to countries with favorable returns may be priorities, ultimately the goal is to increase the financial value of the company for its shareholders. The employment of foreign managers and other social benefits may be considered as secondary objectives, but the main priority is always to maximize shareholder wealth.

The Goal of a Multinational Corporation (MNC) Is