A Foreign Subsidiary Is

question 15

Multiple Choice

A foreign subsidiary is

• A)an extension of the parent and is not an independently incorporated firm separate from the parent.
• B)an affiliate organization of the MNC that is independently incorporated in the foreign country, and one in which the U.S. MNC owns at least 10 percent of the voting equity stock.
• C)either a minority foreign subsidiary (an uncontrolled foreign corporation) or a controlled foreign corporation.
• D)both b and c

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Definitions:

Distribution

The process of allocating assets, earnings, or dividends among shareholders, or the spread of investments within a portfolio.

Corporate Dividend Payout

The portion of earnings distributed to shareholders in the form of dividends.

Firm's Earnings

The profit of a company after all expenses and taxes have been deducted from revenue, indicating the company’s financial performance over a specified period.

Ex-Dividend Date

The specific date on which a declared dividend is set, after which a stock buyer is not entitled to the declared dividend.