State with reasons whether the following statements are True or False.

Wholly owned subsidiaries means establishing a firm that is jointly owned by two or more independent firms.

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Solution

Wholly owned subsidiaries means establishing a firm that is jointly owned by two or more independent firms- False

Explanation:
A wholly-owned subsidiary does not work in partnership with any other company. A wholly-owned subsidiary is one over which the parent company has full control. It is formed either by making 100% investment in the equity of an existing company or by starting a new company in a foreign country.

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Similar questions

Q. A means establishing a firm which is jointly owned by two or more independent firms.

One of the ways of establishing a wholly owned subsidiary is acquiring an established firm in the foreign country and using that firm to manufacture or promote its products. In March 2008, Tata Motors acquired Jaguar Land Rover, making it a wholly owned subsidiary of Tata.

Which of the following statement(s) is/are true about Wholly-owned subsidiaries?

1. There is no risk-sharing in the case of wholly owned subsidiaries.

2. The parent firm needs to invest 100 percent of the equity capital in the foreign firm. Hence, it is not suitable for small or medium-sized firms.

Q. A joint venture means establishing a firm that is jointly owned by ______________.

Q. State with reasons whether the following statements are True or False.
In a partnership firm, the liability of partners is unlimited.

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State with reasons whether the following statements are True or False. Wholly owned subsidiaries means establishing a firm that is jointly owned by two or more independent firms.

State with reasons whether the following statements are True or False.

Wholly owned subsidiaries means establishing a firm that is jointly owned by two or more independent firms.