Group structures arise for which of the following reasons?
A)a company may take over its competitors
B)a company may diversify by taking over companies in other types of businesses
C)a company may establish or separate out a part of its business into a controlled limited liability company
D)all of the above

Question

Quizplus · Accepted Answer

All of the choices listed can lead to the creation of group structures. Companies may take over their competitors or diversify by acquiring companies in other industries, both of which can result in multiple entities being controlled by a single parent company. Additionally, a company may establish a separate subsidiary or limited liability company to manage specific aspects of its business, such as a regional office or a product line, which can further add to the complexity of the group structure.

Group Structures Arise for Which of the Following Reasons