Of the following which cash flow provides pure profit to the parent company: licensing agreements, royalties, and overhead allocation fees?
What will be an ideal response?
Answer: Licensing agreements, royalties, and overhead allocation fees are true costs to the subsidiary or to the stand-alone firm that would be operating in the foreign country producing and selling the products of the multinational corporation. Thus, licensing agreements, royalties, and overhead allocation fees reduce the income in the foreign country. Nevertheless, these cash flows provide profit to the parent corporation. Licensing agreements and royalties provide pure profit to the parent as no costs are incurred, and overhead fees provide net profit as they cover costs incurred by the parent. Thus, these
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Why have department stores struggled to survive in the United States in recent years?
What will be an ideal response?
A(n) ________ is a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts
A) acceptance B) revocation C) proposal D) counteroffer
Several transfer pricing policies are used in practice. These transfer pricing policies include:
A) transfer at market price. B) transfer at negotiated price. C) transfer at cost. D) all of these policies.
Article 8 of the CISG establishes rules for interpreting the statements and conduct of the parties
Indicate whether the statement is true or false