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CTP · Question #760

(Topic 8) One reason for charging management fees to subsidiaries is to:

The correct answer is A. justify to local governments the flow of funds to the parent company. See the full explanation below for the reasoning.

Question

  • (Topic 8)

One reason for charging management fees to subsidiaries is to:

Options

  • Ajustify to local governments the flow of funds to the parent company.
  • Bmitigate shareholder concerns about the large investments needed for overseas
  • Cminimize the impact of call provisions generally associated with overseas investing.
  • Dhelp reduce the variability of parent and subsidiary future cash flow.

How the community answered

(42 responses)
  • A
    83% (35)
  • B
    2% (1)
  • C
    5% (2)
  • D
    10% (4)

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