When a wholly owned subsidiary is established in a foreign country, the parent company, which remains in the United States, gives up ownership, authority, and control over all phases of the operation in the foreign country.

Question

Quizplus · Accepted Answer

A wholly owned subsidiary is a company that is entirely owned and controlled by another company, known as the parent or holding company. Therefore, the parent company retains ownership, authority, and control over all phases of the subsidiary's operation in the foreign country.

When a Wholly Owned Subsidiary Is Established in a Foreign