A firm can establish a wholly owned subsidiary by
A) acquiring an existing company in the home country.
B) keeping all of the activity offshore.
C) licensing intellectual property.
D) entering into a franchising agreement.

Question

Quizplus · Accepted Answer

A wholly owned subsidiary is a business in which a multinational company owns 100 percent of the stock. Two ways a firm can establish a wholly owned subsidiary are to (1) acquire an existing company in the home country or (2) develop a totally new operation (often referred to as a greenfield venture).

A Firm Can Establish a Wholly Owned Subsidiary by