In Some Situations,the Profits Earned by a Subsidiary Cannot Be

question 28

Multiple Choice

In some situations,the profits earned by a subsidiary cannot be immediately paid to the parent because of:

• A)restrictions on how much of the profit of a foreign subsidiary can be remitted to the parent imposed by the country where the parent is located.
• B)international trade restrictions that limit the amount of capital flow from country to country.
• C)restrictions on remittances from the subsidiary to the parent imposed by the country where the subsidiary is located.
• D)the lack of liquidity in the assets of the subsidiary that would allow the subsidiary to send cash to the parent.

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Definitions:

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