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:

Spicy

Characterized by the presence of flavors derived from spices, often resulting in a sensation of heat when consumed.

Vegetables

Edible plants or parts of plants, including leaves, roots, flowers, and stems, that are consumed by humans as part of a healthy diet.

Pregnant

A state of carrying a developing fetus within the female body.

Nursing

The field and practice of providing care and assistance to patients for the promotion, maintenance, and restoration of health.