Can an investment project of a foreign subsidiary that has a positive net present value when evaluated as a stand-alone firm ever be rejected by the parent corporation?
Assume that the parent accepts all projects with positive adjusted net present values.
Yes, we know that countries impose withholding taxes on the dividends that are repatriated from subsidiaries to parent corporations. These taxes lower the value of the project to the parent. The parent must also be aware of the possibility of future problems accessing the foreign exchange market from the subsidiary's country. In general, political risk could be different for a subsidiary of a multinational corporation versus a local stand-alone firm.
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National Art is a new business
During its first year of operations, credit sales were $50,000 and collections were credit sales of $32,000. One account, $625 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible. The ending balance of Allowance for Bad Debts account is ________. A) $375 B) $1,000 C) $348 D) $1,628
All of the following are examples of organizational variables that would influence sales performance EXCEPT:
A. How closely the sales force is supervised B. The number of competitors in a territory C. The company's advertising expenditures D. The firm's current market share E. The amount of role conflict