The advantage of the parent(holding company)-subsidiary organization is that it:

Question

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A parent-subsidiary organization structure allows the parent company to limit its liabilities to only the specific subsidiary that incurred them, protecting the parent and its other subsidiaries. Additionally, the parent company can maintain effective control over the subsidiary without owning all of its stock, as long as it holds a controlling interest. This structure also facilitates the mergers and acquisitions process, as integrating the operations of the acquired company with those of the parent is easier when the parent owns the subsidiary. Therefore, choices A and B are both advantages of the parent-subsidiary organization structure.

The Advantage of the Parent(holding Company)-Subsidiary Organization Is That It