A/An ________ subsidiary is one in which the firm operates as an extension of the parent company with cash flows highly interrelated with the parent.
A) self-sustaining foreign
B) integrated foreign entity
C) foreign
D) none of the above

Question

Quizplus · Accepted Answer

An integrated foreign entity is the type of subsidiary in which the firm operates as an extension of the parent company with cash flows highly interrelated with the parent. A self-sustaining foreign subsidiary operates as an independent entity with minimal interdependence with the parent company. A foreign subsidiary is a broad term that can apply to any type of subsidiary located in a foreign country. None of the above is not a suitable answer as it does not provide a correct option.

A/An ________ Subsidiary Is One in Which the Firm Operates