Both Alward and Rofter are large public corporations with subsidiaries throughout the world. Alward uses centralized approach and makes most of the decisions for its subsidiaries. Rofter uses a decentralized approach and its subsidiaries make most of their own decisions. Which of the following is correct?

a) agency costs would be the same for both companies

b) a decentralized approach is almost always better

c) a centralized approach is almost always better

d) the agency problem would probably be more pronounced for Rofter because of a higher probability that subsidiary decisions would conflict with the parent

e) none of the above