The Usual Impetus for Transactions That Create a Long-Term Debtor-Creditor

Multiple Choice

The usual impetus for transactions that create a long-term debtor-creditor relationship between members of a consolidated group is due to the:​

A) ​subsidiary's ability to borrow larger amounts of capital at more favorable terms than would be available to the parent.
B) ​parent's ability to borrow larger amounts of capital at more favorable terms than would be available to the subsidiary.
C) ​parent's desire to decentralize asset management and credit control.
D) ​parent's desire to eliminate long-term debt.