An advantage for wholly owned subsidiaries is sharing costs, risk, and profits.

Question

Quizplus · Accepted Answer

Wholly owned subsidiaries are fully owned and controlled by the parent company, so there is no opportunity to share costs, risks, or profits with other entities. However, the parent company has complete control over the subsidiary and can make decisions that align with its overall strategy. Wholly owned subsidiaries operate independently and do not share costs, risk, or profits with any other entities. They are fully owned and controlled by the parent company.

An Advantage for Wholly Owned Subsidiaries Is Sharing Costs, Risk