A Parent Company Chooses to Acquire Only a 65% Interest

question 33

Multiple Choice

A parent company chooses to acquire only a 65% interest in its subsidiary. Which of the following is not a reason why the parent would choose to acquire less than a 100% interest in a subsidiary?

• A)Reduction of ownership risk
• B)Potential for increased share dilution
• C)Maintenance of a market for the subsidiary's shares
• D)Potential links to government support and management expertise through the NCI

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Definitions:

Workplace Environment

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Demanding Problems

Issues or situations that are challenging and require significant time, effort, or resources to resolve.

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A leadership framework that focuses on enabling leaders to adapt to changing environments by diagnosing challenges, interpreting them, and intervening appropriately.

Derogatory Term

A word or phrase used to disrespect or demean an individual or group, often reflecting prejudice or discrimination.