The Advantages of Holding Companies Include ________

question 108

Multiple Choice

The advantages of holding companies include ________.

• A) reduced federal corporate taxes due to the holding company status
• B) decreased risk resulting from the leverage effect
• C) possible state tax benefits realized by each subsidiary in its state of incorporation
• D) low cost of administration

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Definitions:

Defensive Self-Esteem

A psychological condition where a person's self-esteem is fragile and thus they react defensively to criticism or failure.

Emotional Stability-Instability

A personality trait that involves the consistent ability or inability to remain stable and balanced in one’s emotions.

Extraversion-Introversion

A personality dimension that describes the extent to which an individual is outgoing and gains energy from social interaction (extraversion) or is reserved and gains energy from solitude (introversion).

Openness-Closedness

A dimension of personality that describes the degree to which a person is open to experiencing a variety of activities or is closed and prefers familiarity.