In the Financing of a Foreign Affiliate, the Simplest and Most

question 86

True/False

In the financing of a foreign affiliate, the simplest and most common arrangement is a direct loan from the parent company to the subsidiary.

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Definitions:

Tradition Influence

The impact that long-established beliefs, customs, and practices have on individuals or societies.

Law Enforcement

The system through which members of society act in an organized manner to enforce the law by discovering, deterring, rehabilitating, or punishing people who violate the rules and norms governing that society.

Categorical Imperative

A concept in moral philosophy developed by Immanuel Kant, stating that one should act only according to that maxim by which one can at the same time will that it should become a universal law.

Ethical Codes

Written guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.