One advantage of wholly owned subsidiaries is? protection of know-how complete equity and operation control fast entry speed all of these answers

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11-08-2022
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One advantage of wholly owned subsidiaries is? protection of know-how complete equity and operation control fast entry speed all of these answers

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pannurekha166 pannurekha166 · Answer 1 · 2022-08-18T14:25:32+02:00

While a parent firm retains operational and strategic control over its fully owned subsidiaries, the overall level of control is often lower for an acquired subsidiary with a proven track record of success abroad. Common operating procedures are significantly easier to develop when a corporation hires its own people to run the subsidiary than they are when taking over a business with established leadership.

As an additional measure to reduce the danger of losing intellectual property to rival businesses, the parent company may implement its own data access and security guidelines for advantage of wholly owned subsidiaries. Similar cost-saving practices include sharing administrative services, developing similar marketing strategies, and using similar financial systems. A parent firm also controls the investments made using the assets of its wholly-owned subsidiaries.

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