Solved

When a Subsidiary Is Restricted from Remitting Its Profits to the Parent,the

Question 4

Multiple Choice

When a subsidiary is restricted from remitting its profits to the parent,the parent:


A) incurs opportunity costs in the sense that it cannot use those funds for other projects.
B) incurs real costs in the nature of lost profits that could have been earned with the funds.
C) is not affected since the restricted funds will eventually be paid to the parent.
D) can avoid the negative effects of being deprived of the funds by borrowing and using the restricted funds as collateral for the loans.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents