Once a Foreign Firm Creates a Subsidiary Abroad Under Its

question 34

True/False

Once a foreign firm creates a subsidiary abroad under its control,it risks waiving its protection under bilateral investment treaties.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, which is used for assessing its liquidity, operational efficiency, and financial health.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Accounts Receivable

Accounts receivable from customers for deliveries of goods or provision of services by a company, payment for which is not yet made.

Inventory

The total amount of goods and materials held in stock by a company, intended for sale or production.