Solved

When the Parent Company Fully Responsible for the Subsidiary's Obligations

Question 77

Multiple Choice

When the parent company fully responsible for the subsidiary's obligations,


A) the independent financial structure of the subsidiary is irrelevant.
B) potential creditors will examine the parent's overall financial condition, not the subsidiary's.
C) the independent financial subsidiary can have the same capital structure as the parent.
D) all of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions