When the Parent Company Fully Responsible for the Subsidiary's Obligations

question 77

Multiple Choice

When the parent company fully responsible for the subsidiary's obligations,

• A)the independent financial structure of the subsidiary is irrelevant.
• B)potential creditors will examine the parent's overall financial condition, not the subsidiary's.
• C)the independent financial subsidiary can have the same capital structure as the parent.
• D)all of the above

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