One Advantage of the Use of Fees or Royalties to Manage

question 29

Multiple Choice

One advantage of the use of fees or royalties to manage the MNC's cash flow is ____.

• A)less communications costs
• B)less exchange rate risk
• C)more favorable tax treatment by the parent country's government
• D)less suspicion by the host government

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Definitions:

Tort Action

A lawsuit brought to recover damages for a private wrong or injury that was not contracted for, such as negligence, defamation, or trespass.

Self-Defence

The right to respond to an assault with as much force as is reasonable in the circumstances.

Assault And Battery

Legal terms where "assault" refers to the threat of bodily harm, while "battery" refers to the actual physical impact on another person.

Consent

Voluntary agreement or permission given by a person with full understanding of the matters involved.