A wholly owned subsidiary is appropriate when the firm wants Multiple Choice 100 percent of the profits generated in a foreign m

Question

ahrayia [7]

3 years ago

8

A wholly owned subsidiary is appropriate when the firm wants Multiple Choice 100 percent of the profits generated in a foreign m

arket. to share the cost and risk of developing a foreign market. to test a market. a plant that is ready to operate.

Business

1 answer:

bezimeni [28] · Answer 1 · 2021-12-01T21:15:55+03:00

Answer:

A wholly owned subsidiary is appropriate when the firm wants

100 percent of the profits generated in a foreign market.

Explanation:

100 percent ownership means 100 percent taking of the whole profits or losses generated by a company's subsidiary. It is only when a subsidiary is not wholly owned that the profits or losses generated by the subsidiary can be shared. When a company can afford it, they can take 100 percent ownership so that they can control the company wholly without any interference because ownership dictates control.