Question

Wholly owned subsidiaries is a form of a/an ___________.

• A. international business
• B. foreign exchange market
• C. trance national company
• D. multi national organisation

Answer 1

Answer: (A)

international business

Wholly owned subsidiary is a form of international business through direct investment in the properties in foreign countries with a view of undertaking

production and marketing of goods and services in those countries.

A company can set up a wholly owned subsidiary abroad by making 100 per cent investment in foreign ventures, and thus acquiring full control over subsidiary’s operations in the foreign market.

A subsidiary company is considered wholly owned when all of the common stock is owned by another company called as the parent company.