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.

Question

Quizplus · Accepted Answer

An integrated foreign entity is a subsidiary where the operations are integrated with the parent company and cash flows are highly interrelated. A self-sustaining foreign subsidiary operates independently with minimal dependence on the parent company, while a foreign subsidiary refers to any subsidiary located outside the home country. "None of the above" is not an appropriate answer as one of the options is correct.

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