Asked by
Adelin Mushita
on Dec 01, 2024Verified
The advantage of the parent(holding company) -subsidiary organization is that it:
A) can keep the liabilities of subsidiaries away from the parent and other subsidiaries.
B) enables the parent to effectively control a subsidiary company without owning all of its stock.
C) makes it easier to merge the operations of the acquired company with those of the parent.
D) a and b
Parent-Subsidiary Organization
A corporate structure in which a parent company owns a controlling interest in one or more subsidiary companies, allowing for centralized governance and operational synergy.
Liabilities
Financial obligations or debts that a company or individual owes to others, which need to be settled over time.
Effectively Control
Effectively control in financial terms refers to the power to direct the financial and operational policies of an entity so as to gain benefits from its activities, often achieved through ownership, contracts, or other means.
- Comprehend the legal and regulatory structures that regulate mergers and acquisitions.
Verified Answer
JM
Learning Objectives
- Comprehend the legal and regulatory structures that regulate mergers and acquisitions.