Which one of the following is not an approach to determine a subsidiary's financial structure:
A)conform to the parent company's norm
B)conform to the local norm of the country where the subsidiary operates
C)vary judiciously
D)vary randomly

Question

Quizplus · Accepted Answer

Varying randomly is not a valid approach to determine a subsidiary's financial structure. The financial structure should be determined based on strategic considerations, such as the subsidiary's business model, competitive position, growth prospects, and capital requirements. Conforming to the parent company's norm, conforming to the local norm, and varying judiciously are all valid approaches, depending on the specific circumstances of the subsidiary and the parent company's objectives.

Which One of the Following Is Not an Approach to Determine