Multinationals Often Strive to Maximize the Amount of Equity from the Parent

question 18

True/False

Multinationals often strive to maximize the amount of equity from the parent company in foreign subsidiaries in order to reduce capital risk.

---

Definitions:

Planning Budget

A budget prepared for a specific level of activity, often used for planning and coordinating actions.

Activity Variances

Differences between planned or budgeted amounts of costs or revenues and actual amounts incurred, attributable to specific activities.

Customers Served

The number or segment of clients or consumers to whom a business has provided goods or services.

Budgeting

The process of creating a plan to spend your money, outlining projected income versus expenses for a certain period.