An important feature of wholly owned subsidiaries is that:
A) they face a low risk with large investments in one area.
B) they are very efficient with entering multiple countries or markets.
C) they offer higher profits, clearer communications, and shared visions to a multinational company (MNC).
D) they involve reduced risk and involvement for a multinational company (MNC).

Question

Quizplus · Accepted Answer

Because of sole ownership, it has been found that profits can be higher with wholly owned subsidiaries and that there are clearer communications and shared visions. The primary reason for the use of wholly owned subsidiaries is a multinational company's (MNC's) desire for total control and the belief that managerial efficiency will be better without outside partners.

An Important Feature of Wholly Owned Subsidiaries Is That