Through a ________ the parent company deposits a large sum in a foreign bank, which transfers it to a subsidiary as a loan.
A) trade credit
B) dividend remittance
C) fronting loan
D) royalty payment

Question

Quizplus · Accepted Answer

A fronting loan is a financial arrangement where a parent company deposits a large sum in a foreign bank, which then transfers it to a subsidiary as a loan. This method is often used to bypass restrictions on direct loans from parent to subsidiary.

Through a ________ the Parent Company Deposits a Large Sum