An American Aircraft Manufacturer Has a Subsidiary in Indonesia

Multiple Choice

An American aircraft manufacturer has a subsidiary in Indonesia.The subsidiary needs funding to expand its operations.The parent company deposits the required funds in a London based international bank.The money is then transferred to the subsidiary by the bank.The above serves as an example of:

A) debt financing.
B) transfer pricing.
C) equity financing.
D) trade credit.
E) fronting loan.