Key Advantages of Holding Companies Include All of the Following

question 154

Multiple Choice

Key advantages of holding companies include all of the following EXCEPT

• A) they permit a firm to control a large amount of assets with relatively small dollar investment.
• B) they help in terms of risk protection because the failure of one of the companies does not result in the failure of the entire firm.
• C) lawsuits or legal actions against a subsidiary do not threaten the remaining companies.
• D) All of the above are advantages.

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Definitions:

Fewest Assumptions

A principle suggesting that the simplest explanation, requiring the least speculative assumptions, is often the most accurate.

Casual Observation

An informal method of gathering data or evidence without a structured framework or hypothesis in mind.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, characterized by open-mindedness, skepticism, and an analytical approach.

Gut Feelings

Intuitive judgments and responses that are not the result of conscious reasoning.