All of the Following Are Reasons for Investing in Subsidiaries,except

question 93

Multiple Choice

All of the following are reasons for investing in subsidiaries,except:

• A) the investment creates one legal entity where two separate legal entities used to exist
• B) subsidiaries may enable the parent company to generate more sales
• C) they may enable the parent to limit its liability for risky ventures
• D) they may ease expansion into foreign countries

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Definitions:

Phobias

Irrational and intense fears of objects, situations, or activities that pose little to no actual danger, often leading to avoidance behaviors.

Compulsions

Repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, aimed at reducing anxiety or preventing a dreaded event.

Biases

Systematic tendencies to lean in a certain direction, often resulting in unfair judgments or decisions.

Drives

Internal motivational states created by physiological needs, which direct behavior to fulfill those needs.