The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Question

Quizplus · Accepted Answer

Greenfield investment involves starting a new project or business from scratch, rather than acquiring an existing company. This allows the firm to design and build the subsidiary company exactly as they want it, with the desired infrastructure, management, and culture. In contrast, acquiring an existing company may come with certain limitations or challenges inherited from the previous owners. Therefore, the statement is true that greenfield investment provides greater ability to create the desired subsidiary company.

The Main Advantage of Greenfield Investment Is That It Gives