A Fronting Loan

question 34

Multiple Choice

A fronting loan:

• A)helps a multinational to make a direct intrafirm loan,where the parent company lends cash directly to the foreign subsidiary,and the subsidiary repays it later.
• B)can circumvent host-country restrictions on the remittance of funds from a foreign subsidiary to the parent company.
• C)is suitable for lending funds to subsidiaries based in countries which are politically stable.
• D)offers insignificant tax advantages.

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Definitions:

Revisions

modifications or changes made to a document, plan, or work to improve it or to include new information.

Delays Action

Postponing or deferring an action or decision, often temporarily.

Irritates

Causes annoyance or discomfort to someone.

External Audience

Individuals or groups outside of an organization who are potential or actual recipients of communication from that organization.