In Arranging International Finance for New Operations, Issuing Shares Using

question 25

True/False

In arranging international finance for new operations, issuing shares using corporate holding companies, regional headquarters makes new subsidiaries susceptible to corporate control problems and short-term profit pressures

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Definitions:

Commercial Impracticability

A legal doctrine allowing parties to suspend or terminate their contractual obligations when unexpected events fundamentally alter the nature of the contract and performance becomes unfeasibly burdensome.

Substantial Performance

A concept in contract law where a party has completed enough of the contract to warrant payment, though some minor elements may still need to be finished.

Construction Industry

A sector of the economy focused on the planning, designing, and building of infrastructure and buildings.

Frustration Of Purpose Doctrine

The Frustration of Purpose Doctrine is a legal principle allowing contract parties to be relieved from performing their obligations when an unforeseen event undermines the contract’s original purpose.