When the Choice of Financing a Foreign Subsidiary Is Between

question 50

Multiple Choice

When the choice of financing a foreign subsidiary is between external debt and equity financing

• A)many host governments tolerate the repatriation of funds in the form of interest much better than dividends.
• B)debt financing is generally secured from the World Bank, but only in developed countries.
• C)many host governments tolerate the repatriation of funds in the form of dividends much better than interest.
• D)none of the above

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Definitions:

More Power

The possession of greater authority, influence, or strength compared to another individual, group, or entity.

Abuse Power

The misuse of one's position of authority or control to harm, exploit, or unfairly disadvantage others.

Role of Incentives

The role of incentives in negotiations involves using motivational factors to encourage or influence the behavior or decisions of the other party.

Age

The length of time that a person or object has existed.