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

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, often represented as a percentage of total sales in that market.

SWOT Analysis

A strategic planning tool used to identify and assess an organization's Strengths, Weaknesses, Opportunities, and Threats in relation to competition and market dynamics.

External Considerations

Factors outside an organization that can impact its operation and performance, such as market trends, competition, laws, and customer preferences.

Threats

Potential or actual negative forces or obstacles outside or inside an organization that could cause harm or impede progress.