If a Parent Company Backs the Debt of a Foreign

question 41

True/False

If a parent company backs the debt of a foreign subsidiary, the borrowing capacity of the parent might be reduced as creditors are not willing to provide as many funds to the parent if those funds may possibly be needed to rescue a parent's subsidiary.

---

Definitions:

Open-Door Policy

A management approach that encourages employees to communicate openly with superiors, feedback, and discuss any matter without fear of retribution.

Poaching Talent

The practice of deliberately hiring employees from rival companies to gain competitive advantages.

Headhunting

The process of recruiting highly skilled individuals for specialized positions, often involving proactive searching.

Voluntary Turnover

Occurs when employees choose to leave their jobs of their own accord, rather than being fired or laid off.