Why Would an MNC Receive Only a Partial Remittance of Its

question 48

Multiple Choice

Why would an MNC receive only a partial remittance of its wholly-owned foreign subsidiary's after-tax earnings?

• A)The foreign subsidiary might remit part of its earnings to owners other than the MNC.
• B)The foreign subsidiary might pay some of its earnings in salaries to the officers of the foreign subsidiary.
• C)The foreign subsidiary might have to pay certain fees to the government of the country where it operates.
• D)The foreign subsidiary might retain part of its earnings for reinvestment in the foreign subsidiary.

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Definitions:

Supplier Performance

The assessment of a supplier's ability to meet buyer expectations, including factors such as product quality, delivery time, and compliance with terms.

Rapid Response

The ability to react quickly and effectively to unexpected situations or changes, often crucial in emergency or customer service scenarios.

On-Time Delivery

The process of delivering goods or services to customers at the promised or scheduled time without delays.

Supply Chain Management

The administration of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.