If the parent charges the subsidiary administrative fees, the earnings from the project will appear low to the parent and high to the subsidiary.

Question

Quizplus · Accepted Answer

When a parent charges the subsidiary administrative fees, it increases the expenses of the subsidiary, thus reducing its earnings. Conversely, these fees are income to the parent, potentially making the project appear more profitable from the parent's perspective.

If the Parent Charges the Subsidiary Administrative Fees, the Earnings