Which of the Following Is an Advantage of Wholly Owned

question 39

Multiple Choice

Which of the following is an advantage of wholly owned subsidiaries?

• A) The parent company receives all profits generated by the subsidiary.
• B) They are the least expensive investment entry modes.
• C) They help in the sharing of the cost of an international investment project.
• D) They are the least risky when compared to other investment entry modes.

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Definitions:

Updating

The act of revising or refreshing information to reflect the most current data available.

Wages

Wages are payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Workweek

A recurring period of seven consecutive days designated for work, usually comprised of Monday through Friday.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial condition at a specific point in time, showing assets, liabilities, and shareholders’ equity.