Which of the following is true of the parent-subsidiary relationship?
A) The ability to create a community of knowledge is low.
B) The parent firm has no control and command over the subsidiary.
C) The transaction costs that arise are frequently due to transfer prices.
D) The parent firm will lack specialization and division of labor.

Question

Quizplus · Accepted Answer

In the parent-subsidiary relationships, transaction costs that arise are frequently due to political turf battles, which may include the capital budgeting process and transfer prices, among other areas.

Which of the Following Is True of the Parent-Subsidiary Relationship