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Both Talmot and Delmont are large public companies with subsidiaries throughout the world. Delmont uses a decentralized approach and its subsidiaries...
Both Talmot and Delmont are large public companies with subsidiaries throughout the world. Delmont uses a decentralized approach and its subsidiaries make most of their own decisions. Talmot uses a centralized approach and makes most of the decisions for its subsidiaries.
Which of the following is correct?
*Agency COSTS would be the same for both companies.
*Agency PROBLEMS would be the same for both companies
*Agency problems would probably be more pronounced for Delmont because it is more likely that subsidiary decisions would conflict with the parent
*Agency problems would probably be more pronounced for Talmot because it is more likely that subsidiary decisions would conflict with the parent
*None of the above
