Which of the Following Is Not a Reason for an Entity

question 12

Multiple Choice

Which of the following is not a reason for an entity to prefer to have less than 100% ownership interest in a subsidiary?

• A) To comply with regulatory requirements.
• B) To receive the whole gain on acquisition.
• C) To decrease the cash necessary to acquire the control over the subsidiaries.
• D) To incentivise the subsidiary's executives by allowing them to hold a non-controlling interest.

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Definitions:

Plant Managers

Individuals responsible for overseeing the daily operations of manufacturing plants and facilities, ensuring efficient production processes.

Multi-Plant Firms

Multi-plant firms are companies that operate more than one manufacturing or production facility, often to meet large-scale demand or diversify production locations for strategic advantages.

Output

The total amount of goods or services produced by a firm, sector, or economy over a specific period of time.

Form File

A standardized document or template used for official purposes, often requiring filled details before submission.