Consider Two Different Foreign Subsidiaries of Georgia-Pacific Wood Products Inc

question 7

Multiple Choice

Consider two different foreign subsidiaries of Georgia-Pacific Wood Products Inc. The first subsidiary mills trees in Canada and ships its entire product to the Georgia-Pacific U.S. The second subsidiary is also owned by the parent firm but is located in Japan and retails tropical hardwood furniture that it buys from many different sources. The first subsidiary is likely a/an ________ foreign entity with most of its cash flows in U.S. dollars, and the second subsidiary is more of a/an ________ foreign entity.

• A) domestic; integrated
• B) self-sustaining; domestic
• C) integrated; self-sustaining
• D) self-sustaining; integrated

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing assets or financial matters.

Revised Uniform Limited Partnership Act

A standardized set of laws intended to govern limited partnerships across states, aiming to provide a consistent legal framework for their creation, operation, and dissolution.

Dissolved

The process of officially ending the existence of a legal entity, such as a corporation or partnership.

Revised Uniform Limited Partnership Act

A set of laws adopted by some states to govern the formation, operation, and dissolution of limited partnerships.