A wholly owned subsidiary is appropriate when the firm wants
A) to share the cost and risk of developing a foreign market.
B) 100 percent of the profits generated in a foreign market.
C) a plant that is ready to operate.
D) to test a market.

Question

Quizplus · Accepted Answer

Establishing a wholly owned subsidiary gives the firm a 100 percent share in the profits generated in a foreign market.

A Wholly Owned Subsidiary Is Appropriate When the Firm Wants