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When a Foreign Subsidiary Is Not Wholly Owned by the Parent

Question 12

Multiple Choice

When a foreign subsidiary is not wholly owned by the parent and a foreign project is partially financed with retained earnings of the parent and of the subsidiary, then:​


A) the parent's perspective should be used to evaluate a foreign project.
B) the subsidiary's perspective should be used to evaluate a foreign project.
C) the foreign project should enhance the value of both the parent and the subsidiary.
D) none of the above

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