When a Foreign Subsidiary Pays Dividends to Its U

question 50

Multiple Choice

When a foreign subsidiary pays dividends to its U.S.parent,this process is known as:

• A)repatriation.
• B)the reverse authoritative principle.
• C)income-splitting.
• D)earnings management.

---

Definitions:

Project Analysis

Project analysis involves evaluating the financial viability, stability, and profitability of a project before committing resources to it.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flow to recover the cost of the investment.

Salvage Value

The projected sum an asset is expected to fetch at the end of its service life.

Cost Savings

The reduction in costs achieved through efficiency improvements, strategic purchase, or avoiding unnecessary expenses.