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What Are the Advantages of Pursuing a Wholly Owned Subsidiary

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What are the advantages of pursuing a wholly owned subsidiary as an entry strategy?


Definitions:

Allowable Depreciation

The deduction a company can take over the useful life of an asset, as determined by tax laws, to account for wear and tear.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Resale Value

The expected amount that an item or asset can be sold for at a future date, taking into account depreciation and market demand.

Sum-Of-The-Years-Digits

An accelerated method of depreciation which calculates annual depreciation by multiplying an asset's cost by a fraction that decreases year by year.

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