A firm and its subsidiaries who own 100% of its shares is regarded as:
A)risk averse.
B)a very successful firm.
C)debt free.
D)a wholly owned subsidiary.

Question

Quizplus · Accepted Answer

A firm and its subsidiaries who own 100% of its shares is known as a wholly owned subsidiary. This means that the owning firm has full control over its subsidiary's operations and decisions, as they hold all of the subsidiary's stocks. It does not necessarily mean that the firm is risk averse, debt-free, or very successful, as these factors are not determined solely by ownership structure.

A Firm and Its Subsidiaries Who Own 100% of Its