Domestic parent and foreign subsidiary

Reference no: EM1345325

Intercompany debt, both long-term and short-term arises, frequently. In some cases, intecorporate borrowings may arise because one affiliate can borrow at a cheaper rate that others, and lending to other affiliates may reduce the overall cost of borrowing. In other cases, intercompany receivables/ payables arise because of intercompany sales of goods or services or other types of intercompany transactions.

Problem:

a) What major problem might arise with intercompany debt between a domestic parent and a foreign subsidiary or between subsidiaries in different countries? How has Hershey Foods dealt with this problem?

b) Did Hershey Foods's intercompany loans arise because of direct loans or because if intercompany sales of goods and services on credit?

Reference no: EM1345325

Questions Cloud

Elements of working capital for 2006 fiscal year : Explain and quantify the elements of working capital for 2006 fiscal year for both the Walt Disney Company and Apple. Explain the functions of intermediaries and financial regulatory bodies within the companies.

What is the rockets utmost altitude : A 250 kg weather rocket is loaded with 100kg of fuel and fired straight up. It accelerates upward at 32m/s2 for 34 s, then runs out of fuel. overlook any air resistance effects.

Determine total transaction costs : Steve Bolten sold his sailboat for $225,000. He paid a sales commission of 10 percent to boat brokers, had legal fees of $500, & had additional selling costs of $1,000.

Why should the it firm hire our firm : For both the proposal and presentation you should be answering the question, Why should the Attem firm hire our firm?

Domestic parent and foreign subsidiary : What major problem might arise with intercompany debt between a domestic parent and a foreign subsidiary or between subsidiaries in different countries? How has Hershey Foods dealt with this problem?

Customized pricing : Answer the following questions and put them in essay form. This case describes one reason manufacturers might want to offer rebates rather than decrease wholesale price.

What is the speed of toyota prius relative to the vw : A Toyota Prius driving north at 61.0 {rm mph} and VW Passat driving south at 41.0 {rm mph} are on the same road heading along each other (but in different lanes). (We take the positive direction to be north.)

Sensitivity analysis-contingency planning : How does sensitivity analysis relate to contingency planning? What are a couple risk mitigation strategies which you could execute to de-sensitize these variables?

What is the magnifying power of astronomical telescope : A positively charged light metal ball is suspended between two oppositely charged metal plates on an insulating thread as shown below. After being charged once, plates are disconnected from the battery. define the behavior of the ball.

User Account

All Pages