All of the Following Are Advantages of Holding Companies EXCEPT

question 107

Multiple Choice

All of the following are advantages of holding companies EXCEPT

• A) reduced federal corporate taxes due to the holding company status.
• B) possible provincial tax benefits realized by each subsidiary in its state of incorporation.
• C) lawsuits or legal actions against a subsidiary will not threaten the remaining companies.
• D) since each subsidiary is a separate corporation, the failure of one company should cost the holding company no more than its investment in that subsidiary.