Funds Can Be Moved Out of a Particular Country in Which

question 95

Multiple Choice

Funds can be moved out of a particular country in which a parent country has set up a subsidiary by

• A) setting high transfer prices for the goods supplied.
• B) removing royalties imposed on the subsidiary.
• C) charging a discounted fee on the subsidiary.
• D) issuing loans to the subsidiary at discounted rates.

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Definitions:

Disposal

The act of getting rid of something, especially by throwing it away or by sale.

Statute Of Frauds

A legal principle that requires certain types of contracts to be written in order to be enforceable.

Substantial-purpose Rule

A legal doctrine that focuses on the main objective of an action to determine its legality or the applicability of certain laws.

Main-purpose Rule

A legal principle stating that if the main purpose of a promise to pay another's debt is to benefit the promisor, the promise may be enforceable without being in writing.