The Age of a Foreign Subsidiary

question 86

Multiple Choice

The age of a foreign subsidiary

• A) has no influence on payment of dividends.
• B) indicates the number of capital investment needs; older subsidiaries have higher needs.
• C) influences dividend policy in that younger subsidiaries tend to remit a higher proportion of their earnings in dividends to the parent company.
• D) influences dividend policy in that older subsidiaries tend to remit a higher proportion of their earnings in dividends to the parent company.

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Definitions:

Familiar Culture

The common practices, beliefs, and values that are customary and recognizable within a particular group or society.

Moderate Adaptations

Adjustments made in moderation to accommodate or respond to changes or challenges.

American Ways

American Ways refer to the customs, behaviors, and cultural norms commonly associated with the American society.

Cross-cultural Negotiations

Negotiation processes that involve parties from different cultural backgrounds, requiring awareness and adaptation to cultural differences.