For example, income from subsidiaries will be subject to taxes in the country in which it resides. The subsidiary is an extension and the parent organization and is responsible for achieving customer service and sales goals. Furthermore, host countries may require that a percentage of the middle and senior management team be local citizens, and business licenses are time-sensitive and need to be updated as changes in business regulations are noted (Pearce & Robinson, 2011, p . 131). Subsequently, equity investments, provided by venture capitalists or private companies, are necessary to raise funds or acquire expertise in order to grow the company (Pearce & Robinson, 2011, p. 131). Investors who seek this method only see a return on their investment when they sell their stake to other investors or the organization liquidates their assets. To make an investment, venture capitalists will value the company based on its debt-to-value ratio (Keythman, 2015). In other words, it's a relationship between how much debt will be taken on versus how much the company is worth since too much debt reduces the value of the owner's equity. Finally, 100% subsidiaries are reported when a company's shares are 100% owned by another company, while a common subsidiary is 51%-99% owned by a parent company (Schreine, 2015). For