Scenario: Verandas International Verandas International Is Expanding Its Operations in North America. the North

Multiple Choice

Scenario: Verandas International
Verandas International is expanding its operations in North America. The Dutch company supplies products needed by restaurants with outdoor tables. Verandas International is a leader in this industry, but the company believes it must increase its geographic reach to maintain that position.
-Verandas International was turned down when it tried to borrow from a U.S. bank. The bank manager suggested that the parent firm deposit money with the U.S. bank's Dutch branch, and then the U.S. bank's home office would then lend the money to the Dutch company's U.S. subsidiary. This type of arrangement is known as a(n) ________.

A) American Depository Receipt
B) internal funding situation
C) back-to-back loan
D) venture capitol loan