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One of the Chief Disadvantages of a Wholly Owned Subsidiary

Question 44

Multiple Choice

One of the chief disadvantages of a wholly owned subsidiary is that:


A) complete ownership means that the parent company will have to carry the full burden of potential losses
B) it is often perceived as generating low profits.
C) it is often perceived as having problems in supply lines.
D) it is often perceived as being more expensive
E) it is often perceived as a threat to the local media for promotion.

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