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What are the advantages and disadvantages of using wholly-owned subsidiaries?
Wiki User
∙ 11y ago
Advantages of wholly-owned subsidiaries include a tight control when it comes to operations, the ability to experience economies, and the protection of technology. The main disadvantage is that you will have responsibility for all of the costs and risks, which may be very high at times.
Wiki User
∙ 9y ago
Wiki User
∙ 11y agoAdvantages:-
1. The parent company is able to exercise full control over the operations of the subsidiary company.
2. Parent company can meet financial and other needs of the subsidiary whenever need arises.
Wiki User
∙ 9y agoThere are financial, strategic and operational disadvantages to a wholly owned subsidiary. The majority of the disadvantages link back to the effects they will have on the parent company.
Wiki User
∙ 16y agoA big difference is not having to calculate a minority interest or worry about needing to revert to other shareholders on key business decisions
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