AFP
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)- A83% (35)
- B2% (1)
- C5% (2)
- D10% (4)
Community Discussion
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