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If a parent company loses control over its subsidiary, it may face significant operational and strategic challenges, including potential financial losses and diminished market influence. The subsidiary might pursue its own interests, leading to misalignment with the parent company's goals. This loss of control can also damage the parent company's reputation and stakeholder confidence, potentially leading to a decline in stock value or investor interest. In severe cases, it may prompt the parent company to consider divestiture or restructuring efforts.
What else can I help you with?
What is the meaning of loss making company?
what is the meaning of loss making company
When stock is obsolete what are the challenges company is likely to face?
I need more information to proceed effectively. If your company is invested in another company that went out of business than that stock no longer exists and can be reported as a loss.
Does renters insurance cover loss of property using a moving company?
The moving company should have their own insurance if items were damaged during the moving process, if not I would get a lawyer!
Do you have to notify your home insurance company if you decide to rent your home to someone else?
Yes, since the situation has changed. Also, you want different coverage such as loss of rent. For example, if there is a fire and your tenant cannot stay at the home, they are not paying rent. By having such coverage, the insurance company provides you with compensation of the loss rent. Also, you can face action from the company by purposely not notifying them of the change.
Does the beneficiary of a key man life insurance have to be the company?
The purpose of Key Man Life Insurance is to benefit the company and provide funds for them to recruit hire and train another key man should the insured die. It is the company that would suffer the loss and therefor is the beneficiary.
What happens when a company has a net loss?
if a company reports a net loss it may still have a net increase in cash
How do you record the merger of a subsidiary into its parent when the investment in the subsidiary exceeds the book value of the subsidiary?
Unfortunately you have to record it as a loss to the parent company. Or it will at least show as a loss on the financial statements.
Can a parent give a child a monetary gift from their company account?
A parent can give a child a monetary gift from their company account. However, they will have to account for this as a business expense in their books. It can become confusing when it is time to figure profit and loss as well as taxes.
If a plane flies through another planes jetwash what happens?
Severe turbulence, possible loss of control.
Is the loss of a parent related to teen suicide?
The loss of a parent, especially a sudden, unexpected loss, can be the stressor in some cases that instigates a suicide attempt.
Assess the types of controls in an international company?
Corporate control is referred to as the majority stockholder, having the ability to influence the Board of Directors. In an international business, subsidiaries and affiliates are controlled by the parent company in a variety of different manners. Much depends on the management of the executives, percentage of ownership by the parent company and financial goals of the company. Certain tax situations may be available where a parent company may cause a loss at one affiliate for overall success of the parent or for the bolstering of another affiliate. This question sounds like these are the controls the writer was speaking of. More can be found on the web by looking up and researching financial controls or corporate accounting. I hope this at least gave some direction. I am a bit rusty in this field.
What happens to a publicly traded company when its stock goes to zero?
you can claim a CAPITAL GAIN LOSS ON YOUR TAX RETURN FOR THE YEAR IF THE COMPANY GOES BANKRUPT that's it.
What is meant by consolidated profit and loss?
When there is a parent and subsidiary companies exists in that situation the combined financial information of parent company as well as subsidiary companies are shown under one statment which are called consolidated financial statements so in consolidated profit and loss account combined information of both parent and subsidiaries shown together rather preparing separate statements.
What is meant by profit and loss?
When there is a parent and subsidiary companies exists in that situation the combined financial information of parent company as well as subsidiary companies are shown under one statment which are called consolidated financial statements so in consolidated profit and loss account combined information of both parent and subsidiaries shown together rather preparing separate statements.
What is a core certification program?
A company has a third party audit, by NBCSA this shows proof of a loss control program is in place.
What is the meaning of loss making company?
what is the meaning of loss making company
What happens to a child if their parent is deported?
When a parent is deported, a child may face emotional distress, financial instability, and potential separation from their family. They may need to adjust to a new living situation and may experience feelings of loss and uncertainty.
