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:

Neurological Functioning

Refers to the proper operation of the nervous system, including the brain, spinal cord, and peripheral nerves, which enables thought, behavior, and bodily functions.

Big Five Personality Traits

A model outlining five broad dimensions of human personality: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

Conscientiousness

A personality trait characterized by organization, dependability, discipline, and a strong sense of duty.

Openness

A personality trait that involves the willingness to experience new ideas, activities, and thoughts without resistance.