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In Some Situations,the Profits Earned by a Subsidiary Cannot Be

Question 28

Multiple Choice

In some situations,the profits earned by a subsidiary cannot be immediately paid to the parent because of:


A) restrictions on how much of the profit of a foreign subsidiary can be remitted to the parent imposed by the country where the parent is located.
B) international trade restrictions that limit the amount of capital flow from country to country.
C) restrictions on remittances from the subsidiary to the parent imposed by the country where the subsidiary is located.
D) the lack of liquidity in the assets of the subsidiary that would allow the subsidiary to send cash to the parent.

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