Which of the following is true of a subsidiary of a multinational corporation present in a foreign country?

Question

Quizplus · Accepted Answer

A subsidiary corporation is organized under the laws of the foreign country where it operates. This allows it to conduct business and be subject to the laws and regulations of that country.

Option B is incorrect because there is typically a liability shield between the parent company and the subsidiary, which means that the parent company is not held responsible for the actions of the subsidiary.

Option C is incorrect because the subsidiary is generally responsible for its own torts and liabilities, unless there is evidence of direct involvement or control by the parent company.

Option D is incorrect because the subsidiary corporation is considered a separate legal entity, which means that it can enter into contracts, own assets, and be liable for its own actions.

Which of the Following Is True of a Subsidiary of a Multinational