1. Which of the following statement(s) is/are true?

I. Sometimes, principal agency conflict doesnt exist in an MNC where shareholders and managers are different parties.

II. Corporate scandals at firms such as Enron, WorldCom, and the Italian firm Parmalat are prime examples of principal agency conflicts.

III. In the United States and the United Kingdom, hostile takeovers can serve as a drastic corporate governance mechanism of the last resort.

1. I only
2. II only
3. III only
4. I & II & III
5. None of the above choices