Rights to variable returns from an investee include:
A)from economies of scale.
B)remuneration from provision of services.
C)returns from denying or regulating access to a subsidiary's assets.
D)all of the above.

Question

Quizplus · Accepted Answer

Variable returns refer to the profits or losses that an investor can expect from their investment. The options listed in the question are all possible sources of variable returns. Economies of scale can lead to lower costs and increased profits for the parent company, which then translates to higher returns for the investor. Remuneration from services provided by the investee can also result in increased profits for the investor. Finally, denying or regulating access to subsidiary assets can result in higher profits for the parent company and therefore for the investor.

Rights to Variable Returns from an Investee Include