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Business Studies

Wholly Owned Subsidiaries

Wholly Owned ...

Question

Wholly Owned Subsidiaries is a form of foreign direct investment.

A

True

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B

False

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Solution

The correct option is A
True

True. Wholly Owned Subsidiaries is a form of foreign direct investment.

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Q. Wholly Owned Subsidiaries is a form of investment.

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

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. venture is a form of market entry strategy with the establishment of a new wholly owned subsidiary in a foreign country.

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

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