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)\(\begin{array}{ll}2 &&&& 1
• \end{array}\)