Company b amp o are huge public businesses subsidiaries


Company B & O are huge public businesses subsidiaries throughout the world. B firm centralized aproach most of the decision they make for its subsidiaies. Firm O use decentralize approach its subsidiaries make alot of the decision

1. Agency problem be more pro nounced for Firm B or O? why

2. Cost for agency likely be higher for firm B or O explain

3. Major advantages & disadvantages for centralized approach such a Firm B uses 

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Finance Basics: Company b amp o are huge public businesses subsidiaries
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