Question
Which of the following statements is correct ? A subsidiarys financial structure is of little importance to the parent firm if the parent is not
Which of the following statements is correct?
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A subsidiarys financial structure is of little importance to the parent firm if the parent is not responsible for the financial obligations of the subsidiary. | |
A subsidiarys financial structure is of little importance to the parent firm whether the parent is responsible or not for the financial obligations of the subsidiary. | |
An investment undertaken by a subsidiary should always be financed with the debt/equity proportion of the parent firm. | |
If the foreign corporate income tax is higher than the domestic one, a foreign investment should always be financed with as much foreign debt as possible. |
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