Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate operation in Brazil that is owned and controlled in its entirety by Adieu. Which form of expanding internationally does this represent?

wholly-owned subsidiary T/F

Question

Zayden Davila

Business

17 March, 10:28

Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate operation in Brazil that is owned and controlled in its entirety by Adieu. Which form of expanding internationally does this represent?

wholly-owned subsidiary T/F

+3

Answers (1)

Know the Answer?

Uriah Dougherty · Answer 1

The statement is: True.

Explanation:

A wholly-owned subsidiary is a corporation with a common stock owned by another company at one hundred percent (100%). When a company owns less than fifty percent (50%) of another company, the company holds a minority interest in it. The parent company will control all development, management, and profits with a wholly-owned subsidiary but it also shares costs and responsibilities.

Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate operation in Brazil that is owned and controlled in its entirety by Adieu. Which form of expanding internationally does this represent?wholly-owned subsidiary T/F

Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate operation in Brazil that is owned and controlled in its entirety by Adieu. Which form of expanding internationally does this represent?

wholly-owned subsidiary T/F