A foreign subsidiary can remit funds to a parent in the following form(s):

Question

Quizplus · Accepted Answer

All of the options listed (dividends, management fees, royalties on trade names, and royalties on patents) are valid forms for a foreign subsidiary to remit funds to its parent company. Dividends are the most common form of remittance, while management fees and royalties on intellectual property are also common transactions between subsidiaries and parent companies.

A Foreign Subsidiary Can Remit Funds to a Parent in the Following