Remitting Profits to the Parent Company from a Foreign Subsidiary

question 20

True/False

Remitting profits to the parent company from a foreign subsidiary more frequently is a method of reducing the long-run exposure risks of foreign exchange.

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Definitions:

S Corporation

A special designation for a corporation that allows income, losses, deductions, and credits to pass through to shareholders for federal tax purposes.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government.

Tax Benefit

A financial advantage that results from specific tax laws or regulations, allowing for reductions in tax liability.

Avoidance

A legal principle that allows a party to cancel or annul a contract under certain conditions.