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 primary goal of a multinational corporation is to maximize shareholder wealth, which means increasing the value of the company's stock and providing returns to shareholders. While MNCs may pursue other objectives such as minimizing taxes and employing foreign managers, these are secondary to the primary goal of maximizing shareholder wealth. The establishment of subsidiaries in any country where operations would provide a return over and above the cost of capital is a means to achieving this goal.

The Goal of a Multinational Corporation (MNC) Is