Donald is the owner of The Party Hat,a U.S.event-planning company.He plans to open an event-planning company,Events & Adventures,in London.Events & Adventures will be totally owned and controlled by The Party Hat,which makes Events & Adventures a ____ of The Party Hat.
A)joint venture
B)total investment agreement
C)strategic alliance
D)wholly-owned subsidiary
E)maquiladora

Question

Quizplus · Accepted Answer

A wholly-owned subsidiary is a company that is completely owned and controlled by another company. In this case, The Party Hat completely owns and controls Events & Adventures, making it a wholly-owned subsidiary. Joint venture refers to a partnership between two or more companies, total investment agreement and maquiladora are not relevant in this context, and strategic alliance refers to a partnership between two companies to achieve a specific goal, which is not the case here.

Donald Is the Owner of the Party Hat,a U