If a Parent Company Has Two Wholly Owned Subsidiaries, How

question 173

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? $\begin{array}{lll}&\text { Legal } & \text { Economic } \\\text { a. } & 3 & 3 \\\text { b. } & 1 & 2 \\\text { c. } & 3 & 1 \\\text { d. } & 2 & 1\end{array}$

---

Definitions:

Demand Pattern

The trends, fluctuations, and behaviors in consumer demand over a specific period.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, indicating how much the numbers in a dataset differ from the mean or average.

Corporate Rate

A specially negotiated price for services, typically offered to businesses or organizations for their employees or members.

Revenue Management

An economic strategy to optimize income by predicting consumer behavior at the micro-market levels and adjusting product availability and price.