Part of the Benefit That a Parent Company Receives by Receiving

question 71

Multiple Choice

Part of the benefit that a parent company receives by receiving payment through royalties can be lost if the subsidiary's:

• A) combined tax rate is higher than the parent's.
• B) local government views royalties as an expense.
• C) local tax rates on profits are extremely high.
• D) managers are controlled directly by the parent.

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Definitions:

Evolutionary Perspective

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective, it suggests that psychological adaptations evolve to solve recurrent problems in human ancestral environments.

Males

Biologically, males are the sex that produces spermatozoa to fertilize the eggs from females.

Females

Refers to the sex of an organism, or part of an organism, that produces non-mobile ova (egg cells) and typically has XX chromosomes in mammals.

Amniocentesis

A medical procedure used in prenatal diagnosis where a small amount of amniotic fluid is sampled from the amniotic sac surrounding a developing fetus.