Which of the following statement(s) is/are true about Wholly-owned sub

1.	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.
Answer» 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.

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.

Answer»

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.