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

question 42

Multiple Choice

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

• A)The subsidiary corporation is organized under the laws of the foreign country.
• B)There is no liability shield between the parent company and the subsidiary.
• C)The parent company is wholly responsible for torts committed by the subsidiary.
• D)The subsidiary corporation is not considered as a separate legal entity.

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Definitions:

Overprescription

The practice of prescribing medication in greater quantities or more frequently than is clinically necessary, often leading to negative health outcomes.

Penicillin

A group of antibiotics derived from Penicillium fungi, used for treating bacterial infections.

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Government

The governing body of a nation, state, or community, responsible for making and enforcing laws, policies and for regulating public affairs.