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