If a Parent Company Has Two Wholly Owned Subsidiaries, How

question 79

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?

---

Definitions:

Offshoring

The practice of relocating certain business operations or services to another country, often to reduce costs or access different markets.

Nonlabor Alternative

Options or solutions that do not involve human labor, often involving automation or technology.

Inputs

Resources (such as time, labor, and materials) used in the production process to create goods or services.

Sarbanes-Oxley

U.S. federal law enacted to protect investors by improving the accuracy and reliability of corporate disclosures, introduced in response to financial scandals.