Tax-Haven Subsidiaries Are Typically Established in a Country That Can

question 62

Multiple Choice

Tax-haven subsidiaries are typically established in a country that can meet the following requirements:

• A) a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm.
• B) the facilities to support financial services, for example, good communications, professional qualified office workers, and reputable banking services.
• C) a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders.
• D) all of the above

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Definitions:

Superordinate Goals

Objectives that require the cooperation and effort of two or more groups or individuals, which can help reduce conflict by establishing common interests.

Common Goal

A shared objective or aim that is pursued by a group or organization, uniting the efforts of all involved towards its achievement.

Power Relationships

Dynamics between individuals or groups characterized by the distribution and exercise of control and influence.

Centralized Structure

A organizational framework where decision-making authority is concentrated at the top levels of management.