Question

What are some ays in which a foreign subsidiary can remit cash flows to a parent?

Answer 1

A foreign subsidiary can remit cash flows to a parent in the following ways:

Dividends

Royalties for the use of trade names and patents

Management fees for central services

What is cash flow?

A cash flow is that situation in the life of a business as well as an individual where they receive the amount of cash or equivalent to cash and at the same time or later on payments are made out.

Basically, cash flow is the movement of cash that is done by people to maintain the liquidity of cash in the market. With the help of the cash flow analysis, it's become easy to analyze the position of the company in the context of cash liquidity.

Thus, all the above-mentioned ways can be used by foreign subsidiaries to remit cash flow.

Learn more about cash flow here:

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