When a foreign subsidiary is not allowed to freely remit the profit to its parent, the parent firm should bill its subsidiary for royalties, management fees, and engineering fees.

Question

Quizplus · Accepted Answer

When a foreign subsidiary is not allowed to freely remit the profit to its parent, the parent firm can bill its subsidiary for royalties, management fees, and engineering fees to transfer the profits back home without violating the restrictions. Therefore, the given statement is true.

When a Foreign Subsidiary Is Not Allowed to Freely Remit