Multiple Choice
All of the following are advantages of holding companies EXCEPT
A) reduced federal corporate taxes due to the holding company status.
B) possible provincial tax benefits realized by each subsidiary in its state of incorporation.
C) lawsuits or legal actions against a subsidiary will not threaten the remaining companies.
D) since each subsidiary is a separate corporation, the failure of one company should cost the holding company no more than its investment in that subsidiary.
Correct Answer:
Verified
Correct Answer:
Verified
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