Which of the Following Is Not a Method for Repatriating

question 152

Multiple Choice

Which of the following is not a method for repatriating profits from foreign subsidiaries?

• A) Management fees for services provided by the parent organization.
• B) Dividends distributed by the subsidiary.
• C) Consulting fees paid to the parent for technical expertise.
• D) Royalties paid for the use of a patent.
• E) Selling common shares.

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Definitions:

Opportunity Cost

Opportunity cost represents the value of the best alternative foregone when a decision is made to choose one option over another.

Optimum

Refers to the best or most favorable condition, value, or level of something.

Budget Constraint

A budget constraint represents the combination of goods and services that a consumer can purchase with their limited income.

Indifference Curves

In consumer theory, a graph showing combinations of goods or services among which a consumer is indifferent, reflecting preferences.