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 because subsidiaries may prioritize their own operations over the overall operations of the MNC, and a centralized management group must keep track of cash flows to ensure proper allocation of resources and overall financial stability.

Since Each Subsidiary May Be More Concerned with Its Own