Which of the following is not a reason why a parent company would prefer to be involved with an NCI?
A)Reduction on ownership risk
B)Potential for increased share dilution
C)Maintenance of a market for the subsidiary's shares
D)Potential links to resources such as government support and management expertise

Question

Quizplus · Accepted Answer

Potential for increased share dilution would not be a reason why a parent company would prefer to be involved with an NCI. The other options, such as reduction of ownership risk, maintenance of a market for the subsidiary's shares, and potential links to resources like government support and management expertise, are all reasons why a parent company would want to be involved with an NCI.

Which of the Following Is Not a Reason Why a Parent