Wholly Owned Subsidiary: Definition, Advantages & Disadvantages

Instructions:

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question 1 of 3

Which of the following offers an explanation of a wholly owned subsidiary?

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1. Why might a company want to establish a wholly owned foreign subsidiary?

2. How does a company benefit from forming or purchasing a wholly owned subsidiary?

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About This Quiz & Worksheet

These tools will prompt you to define what a wholly owned subsidiary is and companies that own wholly owned subsidiaries.

Quiz & Worksheet Goals

These assessments aim to gauge your awareness of the following:

  • Examples of advantages of wholly owned subsidiaries
  • Examples of disadvantages of wholly owned subsidiaries
  • Wholly owned foreign subsidiaries

Skills Practiced

  • Information recall - access the knowledge you've gained regarding different types of business models
  • Knowledge application - use your knowledge to answer questions about wholly owned subsidiaries
  • Critical thinking - apply relevant concepts to examine information about small businesses in a different light

Additional Learning

Dig deeper into the concept of wholly owned subsidiaries with our lesson, Wholly Owned Subsidiary: Definition, Advantages & Disadvantages. You will gain more knowledge of the following concepts with this lesson:

  • Companies that have ownership of wholly owned subsidiaries
  • Diversification
  • Vertical integration
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