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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.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9442161

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