A wholly owned subsidiary could be established by
A) Investing in stocks of the local company
B) Acquiring a local company
C) Through licensing arrangements
D) Through government negotiations

Question

Quizplus · Accepted Answer

A wholly owned subsidiary is typically established by acquiring a local company, which allows the parent company to have complete control over the subsidiary without the need for licensing arrangements or government negotiations. Investing in stocks of the local company might not result in a wholly owned subsidiary unless it results in 100% ownership.

A Wholly Owned Subsidiary Could Be Established by