If a parent company has three wholly owned subsidiaries, how many legal and economic entities are there from the viewpoint of the shareholders of the parent company? $\begin{array}{lll}&\text { Legal }&\text { Economic }\
\text { A) } & 4 & 4 \
\text { B) } & 4 & 1 \
\text { C) } & 1 & 4 \
\text { D) } & 1 & 1
\end{array}$

Question

Quizplus · Accepted Answer

From the viewpoint of the shareholders of the parent company, there are 4 legal entities (the parent company plus three subsidiaries), but economically, they are considered as a single entity because the parent company owns 100% of the subsidiaries.

If a Parent Company Has Three Wholly Owned Subsidiaries, How