Question

Meryl Software Inc., an American MNC wishing total control of its operations, wants to acquire an existing firm, Graphiti Animations, in Canada. If acquired, Graphiti Animations would be a ________.

Answer 1

Answer:

Fully-owned or Wholly owned subsidiary

Explanation:

A fully-owned subsidiary, also called wholly owned subsidiary, is a company in which 100% of its share is owned completely by another company which serves as its parent company. This implies that, the parent company has total control over the fully-owned subsidiary, and as such can appoint its board of directors to oversee operations.