A parent company's foreign investment risk exposure depends on the foreign subsidiary's net ____ position.

Question

Quizplus · Accepted Answer

The parent company's foreign investment risk exposure depends on the foreign subsidiary's net equity position, as this reflects the actual value of the subsidiary's assets and liabilities. The cash position, present value, and working capital are all important metrics, but they do not necessarily provide a complete picture of the subsidiary's financial health or the parent company's exposure to risk.

A Parent Company's Foreign Investment Risk Exposure Depends on the Foreign