If a Parent Company Has Two Wholly Owned Subsidiaries How $\begin{array}{ll} \underline{\text { Legal }} & \underline{ \text { Economic }} \\\end{array}$

question 124

Short Answer

If a parent company has two wholly owned subsidiaries how many legal and economic entities are there from the viewpoint of the shareholders of the parent company? $\begin{array}{ll} \underline{\text { Legal }} & \underline{ \text { Economic }} \\\end{array}$
A) $\begin{array}{ll}3 &&&& 3 \\\end{array}$
B) $\begin{array}{ll}1 &&&& 2 \\\end{array}$
C) $\begin{array}{ll}3 & &&&1 \\\end{array}$
D) $\begin{array}{ll}2 &&&& 1\end{array}$

• A)\(\begin{array}{ll}
• 3 &&&& 3 \\\end{array}\)
• B)\(\begin{array}{ll}1 &&&& 2 \\\end{array}\)
• C)\(\begin{array}{ll}3 & &&&1 \\\end{array}\)
• D)\(\begin{array}{ll}2 &&&& 1
• \end{array}\)

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Definitions:

Advertising

A paid form of nonpersonal communication transmitted through mass media, such as television commercials or magazine advertisements.

Communication

The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express ideas, thoughts, feelings, etc., to someone else.

Industrial Products

Goods produced for use in production and operation for other industries, not intended for direct consumption by consumers.