An Uncontrolled Foreign Corporation Is

question 67

Multiple Choice

An uncontrolled foreign corporation 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 51 percent of the voting equity stock.
• C)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 but less than 50 percent of the voting equity stock.
• D)b and c

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Definitions:

Variable Cost

Costs that vary directly with the level of production or volume of goods and services provided.

Monthly Interest Rate

The percentage of interest that is charged or earned on a loan, deposit, or investment over a month's period.

Cash Only Credit Policy

A credit policy where a company does not extend credit and only accepts cash payments.

Net 30 Policy

A payment term used in business transactions that requires payment to be made in full within 30 days of the invoice date.