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:

Closed Markets

refer to markets that are not open to all, often restricted by trade barriers or regulations, limiting the entry of external players.

Trading Position

A trading position is the stance an investor takes on the expected future performance of a financial instrument, reflected through either holding or trading the instrument.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.

Invested

The act of allocating resources, typically money, into something with the expectation of generating income or profit, such as stocks, bonds, real estate, or a business venture.