Which of the following describes a situation when a parent company would not consolidate a foreign subsidiary?
A) Restrictions on foreign exchange in the foreign country.
B) Restrictions on transfers of property in the foreign country.
C) Other governmentally imposed uncertainties.
D) All of the above

Question

Quizplus · Accepted Answer

All of the options mentioned (restrictions on foreign exchange, transfers of property, and governmentally imposed uncertainties) could create significant difficulties and uncertainties for a parent company when trying to consolidate a foreign subsidiary. As a result, if any of these issues exist, the parent company may choose not to consolidate the subsidiary.

Which of the Following Describes a Situation When a Parent