One advantage of wholly owned subsidiaries is: A) Complete equity and operation control OB) Fast entry speed C) Protection of know-how OD) All of these answers
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One advantage of wholly owned subsidiaries is: A) Complete equity and operation control OB) Fast entry speed C) Protection of know-how OD) All of these answers
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- The difference between subsidiaries and associates can be said to revolve aroundpower and control. Critically evaluate this statement, giving examples of when a parent company would consider investing in either a subsidiary or an associate.Which one of the following is prime objective of holding company? To create monopoly company To control investments of competitors To hold shares and manage other companies To restrict the rights of other companiesNeed a long and detailed self explanatory solution for the following question What are the relative advantages and disadvantages of settings up a wholly owned subsidiary instead of a joint venture?
- Which one of the following is the least likely reason a company may acquire an ownership interest in another company? Select one: a.To benefit form an overvaluing of assets in the investee company b. To oust an inefficient management team c. To take advantage of operating and/or cost synergies d. To exercise an active role in the business' activitiesIdentify the option that you would consider to be among the disadvantages of forming a limited company.a) Legal control and stringent requirements that have to be compliedb) The need to entrust control and decisions to a fewc) Restrictions on return of capital if in excess of company’s requirementsd) The ease with which the share of ownership could be disposed of Select one: A. b, c & d B. c & d C. a, b & c D. a, c & d__________ entail the creation of a third-party legal entity, whereas __________ do not. Licensing agreements; joint venturesJoint ventures; strategic alliancesStrategic alliances; joint ventures Franchising agreements; strategic alliances
- Consider the following statements.I. In applying the Equity Method of accounting for investments in associates, dividends received from the investee are considered a return of capital and should be credited to stockholders’ equity of the investor.II. A subsidiary is an affiliate that is not controlled by an enterprise directly, or indirectly, through one or more intermediaries.State whether the foregoing statements are correct.a. Only I is correctb. Only II is correctc. I and II are correctd. Neither I nor II is correctWhat are some of the advantages of holding companies? Identify adisadvantage.Item 3 Which private company would benefit from using ASPE rather than IFRS? Multiple Choice company with a control block who owns the majority of the business company with operations internationally company interested in debt/equity financing in the external market company whose parent company is a major public corporation
- Which of the following is closest to IFRS 3 Business Combinations definition of control? A company is deemed to have control over another only when it owns a majority of the voting shares of another company. B. A company is deemed to have control when it can elect a majority of the Board members of another company. C. Control is the ability to direct the activities of a company that most significantly affect the investor's returns. D. Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers._________ entail the creation of a third-party legal entity, whereas __________ do not. Licensing agreements; joint venturesJoint ventures; strategic alliancesStrategic alliances; joint venturesFranchising agreements; strategic alliancesWhat is the relationship between Hlayisani Ltd and Mashele Ltd?Select one:a.Venturer and joint venture.b.Investor and associate.c.Parent and subsidiary.d.Venturer and joint operation.