Parent-Subsidiary Asymmetry Can Arise from Forecasting Difference Between the Parent

Parent-subsidiary asymmetry can arise from forecasting difference between the parent and the subsidiary that can arise because:

A) subsidiaries may be estimating cash flow in one currency and the parent may be estimating cash flow in another currency.
B) parents often do not inform subsidiaries of all of the information that the parent uses in its forecasts.
C) subsidiaries can have a positive bias that causes them to overestimate positive cash flow in order to make projects they want to pursue more attractive.
D) parents often encourage subsidiaries to be aggressive in their estimations of positive future cash flow.

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