Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate opera

Question

maks197457 [2]

3 years ago

11

Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate opera

tion in Brazil that is owned and controlled in its entirety by Adieu. What form of expanding internationally does this represent?

Business

1 answer:

Molodets [167] · Answer 1 · 2022-05-02T06:21:27+03:00

Answer:

The correct answer is: Wholly-owned subsidiary.

Explanation:

A Wholly-owned subsidiary is a company whose common stock is 100% owned by another company. When a company owns less than 50% of another company it holds a minority interest in that company. With a wholly owned subsidiary, the parent company can control all production, management, and profits but it also shares costs and responsibilities.