+3 votes
in Class 11 by kratos

State the advantages and disadvantages wholly-owned subsidiary.

1 Answer

+2 votes
by kratos
 
Best answer

Advantage of wholly-owned subsidiary:

  • Under this strategy, the parent company enjoys full control over its operations in the foreign country.

Disadvantage wholly-owned subsidiary:

  • The parent company, being the sole owner, has to bear all the losses of the subsidiary company.
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