Why Would a U

question 2

Multiple Choice

Why would a U.S.bank open a foreign branch bank instead of a foreign chartered subsidiary?

• A)This form of bank organization allows the bank to be able to extend a larger loan to a customer than a locally chartered subsidiary bank of the parent.
• B)To slow down check clearing and maximize the bank's float.
• C)To avoid U.S.banking regulation.
• D)This form of bank organization allows the bank to be able to extend a larger loan to a customer than a locally chartered subsidiary bank of the parent,as well as avoid U.S.banking regulation.

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Definitions:

Useful Life

The estimated duration of time that an asset is expected to be economically usable by an entity, affecting its depreciation calculation.

Product Cost Concept

A concept used in applying the cost-plus approach to product pricing in which only the costs of manufacturing the product, termed the product cost, are included in the cost amount to which the markup is added.

Manufacturing Costs

Manufacturing costs encompass all expenses directly involved in the production of goods, including materials, labor, and overhead.

Markup

The difference between the cost of a product and its selling price, expressed as a percentage over cost.