Subsidiaries a and B Buy from and Sell to Each

question 9

Multiple Choice

Subsidiaries A and B buy from and sell to each other.Suppose that A has excess cash,whereas B is short of cash.How can A funnel money to B?

• A)A can lead payments owed to B
• B)B can lag payments owed to A
• C)A can raise transfer prices on goods sold to B
• D)a and b only

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Definitions:

Object Permanence

The awareness that entities remain in existence even if they are not perceived through sight, sound, or other sensory means.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans, which outlines eight stages from infancy to adulthood.

Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development.

Harlow

Refers to Harry Harlow, a psychologist known for his research on maternal separation and social isolation in rhesus monkeys.