Of the Following, Which Is NOT an Internal Source of Financing

question 20

Multiple Choice

Of the following, which is NOT an internal source of financing for the foreign subsidiary?

• A) equity in the form of cash from the parent firm
• B) equity in the form of real goods from the parent
• C) debt in the form of loans from the same commercial bank used by the parent
• D) All of the above are internal sources of financing for the foreign subsidiary.

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Definitions:

Rationalism

A belief or theory that opinions and actions should be based on reason and knowledge rather than on religious belief or emotional response.

Skepticism

The attitude of doubting the truth of something, such as claims, statements, or beliefs, often requiring evidence or justification.

Christian Morality

A set of ethical standards and principles derived from Christian teachings, focusing on concepts like love, compassion, forgiveness, and integrity.

Self-Discipline

The ability to control one's feelings, desires, and actions; actively making decisions and following them through without external pressure or influence.