MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Debt to Equity Ratio

The parent co...

Question

The parent company has to make 100 per cent _________ in the foreign subsidiaries.

A

debt capital

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

foreign direct investment

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

venture capital

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

equity investments

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D equity investments
The parent company acquires full control over the foreign company by making 100 per cent investment in equity capital. When a company makes a full investment of equity capital of a company,hence the company is owned.

Suggest Corrections

thumbs-up

0

Similar questions

Q. The parent company acquires full control over the foreign company by making 100 per cent investment in __________.

Q. 'FDI is an investment which a parent company makes in a foreign country. Where as FII is an investment made by an investor in the market of a foreign country'. State whether the statement is true or false.

Q. The direct investment provides the investor with a controlling interest in a foreign company. This is known as.

Q. Select the proper option from the options given below and rewrite the sentences.

In ________ the parent company makes 100% investment in its equity capital and thus acquires full control over the foreign company.

(a) Contract Manufacturing
(b) Wholly Owned Subsidiaries
(c) Foreign Companies

500 i n v e s t m e n t a n d a

1,500 investment have a combined yearly return of 8.5 per cent of the total of the two investments. If

500 i n v e s t m e n t h a s a y e a r l y r e t u r n o f 7 p e r c e n t, w h a t p e r c e n t y e a r l y r e t u r n d o e s t h e

1,500 investment have?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Solvency Ratios

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Debt to Equity Ratio

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon