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Business Firms Have Several Reasons for Preferring to Operate as a Group

Question 57

Multiple Choice

Business firms have several reasons for preferring to operate as a group of legally separate corporations, rather than as a single entity.From the standpoint of the parent company, the more important reasons for maintaining legally separate subsidiary companies include which of the following?


A) To reduce the parent's legal or operational risk.
B) To reduce the costs of dealing with jurisdiction-specific differences in corporate laws and tax rules.
C) To expand or diversify.
D) To reduce the costs of divesting assets.
E) all of the above

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