Any four, wholly owned subisidaries and joint venture?
Azra,
Wholly Owned Subsidiaries - A wholly owned subsidiary (abroad) is a firm in which a parent company makes an equity investment to acquire full control over it. In other words, the parent company buys up the entire equity of the firm abroad and makes this firm its subsidiary. Herein, the parent company has full control over its operations in another country through the subsidiary. Also, as the parent company owns 100 per cent share, it thus, bears the entire risk in case of failure of the subsidiary.
For example: American airlines- a wholly owned subsidiary of AMR corporation, BATA, Pepe Jeans and Levi's.
Joint Venture - Joint venture refers to a business agreement in which two or more organisations come together to achieve mutual benefits and gains.The business organisations in a joint venture share their physical, financial and human resources.Also, the partner firms share their losses and profits mutually in the joint venture form of business.
For example: Adidas, Reebok, Sixty Group, Nautica.
Wholly Owned Subsidiaries - A wholly owned subsidiary (abroad) is a firm in which a parent company makes an equity investment to acquire full control over it. In other words, the parent company buys up the entire equity of the firm abroad and makes this firm its subsidiary. Herein, the parent company has full control over its operations in another country through the subsidiary. Also, as the parent company owns 100 per cent share, it thus, bears the entire risk in case of failure of the subsidiary.
For example: American airlines- a wholly owned subsidiary of AMR corporation, BATA, Pepe Jeans and Levi's.
Joint Venture - Joint venture refers to a business agreement in which two or more organisations come together to achieve mutual benefits and gains.The business organisations in a joint venture share their physical, financial and human resources.Also, the partner firms share their losses and profits mutually in the joint venture form of business.
For example: Adidas, Reebok, Sixty Group, Nautica.