The Parent Company Should Decide the Financing Method for Its

question 16

Multiple Choice

The parent company should decide the financing method for its own subsidiaries

• A)with a view toward minimizing the parent's overall cost of capital.
• B)by copying the norms of the host country.
• C)with a view toward gaming the bankruptcy system of the host country.
• D)none of the options

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Definitions:

Higher Principle

An overarching ethical or moral standard that guides decisions and actions, often prioritized over other considerations.

Charismatic Authority

Based on belief in the claims of extraordinary individuals to be inspired by God or some higher principle.

Legal-Rational Authority

Is typical of modern societies. It derives from respect for the law. Laws specify how one can achieve office. People generally believe these laws are rational. If someone achieves office by following these laws, people respect their authority.

Legitimately Accomplish

To achieve or complete something in a manner that is lawful, ethical, and recognized as proper and valid.