Internal Sources of Funds for a Foreign Subsidiary of a MNE

question 22

True/False

Internal sources of funds for a foreign subsidiary of a MNE may come from the parent company but not from a sister subsidiary. Funding from sister subsidiaries are considered external funding.

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Definitions:

Record Date

The specified date on which a company determines the shareholders eligible to receive a dividend or distribution.

Ex-rights Date

The ex-rights date is the first trading day when the buyer of a stock is not entitled to receive a previously declared rights offering, often leading to a decrease in the stock's price.

Venture Capital

Venture capital is financing provided to startups and small businesses with strong growth potential by investors seeking high returns.

Investments

Assets or items that an individual or entity purchases with the expectation that it will generate income or appreciate in value over time.