Tax-Haven Subsidiaries Categorically Referred to as International Offshore Financial Centers

question 54

Multiple Choice

Tax-haven subsidiaries categorically referred to as International Offshore Financial Centers have all of the following characteristics EXCEPT ________.

• A)a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm.
• B)a stable currency to permit easy conversion of funds into and out of the local currency. This requirement can be met by permitting and facilitating the use of Eurocurrencies.
• C)a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders.
• D)All of these answer choices are characteristics of tax-haven subsidiaries.

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Definitions:

Brain-Wave Recording

The process of measuring and recording the electrical activity of the brain, typically using electroencephalography (EEG).

Electroencephalogram

A medical test that measures electrical activity in the brain using small, flat metal discs called electrodes attached to the scalp.

Electrical Energy

The form of energy resulting from the movement of charged particles, such as electrons, through a conductor.

Scalp

The skin covering the head, excluding the face, and the hair that grows on it.