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When Establishing a Subsidiary Overseas

Question 25

Multiple Choice

When establishing a subsidiary overseas


A) a company is subject to only one tax rule, that of the host or home country
B) a subsidiary does not incur exchange rate risk when it takes a loan domestically and is repaid by the parent company
C) local stock and debt markets are not available to the large subsidiaries
D) A subsidiary prefers does not prefer to deal the branch office of the parent company's bank.
E) a financial manager has to be aware of the different types of taxes in a country

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