Which of the Following Is an Indication That a Parent

question 27

Multiple Choice

Which of the following is an indication that a parent company and a foreign subsidiary are integrated?

• A)Control of the subsidiary by the parent
• B)Financing of subsidiary operations provided by the parent
• C)A high volume of intercompany transactions
• D)Sales prices of the subsidiary's goods are set by local market conditions

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Definitions:

Tax Rate Reductions

A decrease in the percentage at which income or transactions are taxed by governmental authorities.

Price Inelastic

A situation where the demand for a good or service remains relatively unchanged despite changes in its price.

Consumption

The use of goods and services by households or individuals, often considered in terms of the total amount consumed in an economy.

Allocation of Resources

The process of distributing available resources among various uses to satisfy the needs and wants of the society.