Why Might a Subsidiary Company Retain Their Own Identity

question 39

Multiple Choice

Why might a subsidiary company retain their own identity?

• A)Maintain their market identity.
• B)Enable the parent company to retain a limited liability status.
• C)Allow their staff to remain autonomous.
• D)All of the above.

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Definitions:

Conditions of Entry

Factors that determine the ease or difficulty with which new competitors can enter an industry or market, affecting competition and market dynamics.

Market Model

A conceptual framework depicting how various economic players interact within a market to determine prices and quantity of traded goods or services.

Pure Monopoly

A market structure where a single supplier has exclusive control over a product or service, with no close substitutes.