When a Subsidiary Is Restricted from Remitting Its Profits to the Parent,the

When a subsidiary is restricted from remitting its profits to the parent,the parent:

A) incurs opportunity costs in the sense that it cannot use those funds for other projects.
B) incurs real costs in the nature of lost profits that could have been earned with the funds.
C) is not affected since the restricted funds will eventually be paid to the parent.
D) can avoid the negative effects of being deprived of the funds by borrowing and using the restricted funds as collateral for the loans.

Correct Answer:

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