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What Is the Primary Advantage of Operating Interdependent Subsidiaries

Question 2

Multiple Choice

What is the primary advantage of operating interdependent subsidiaries?


A) It reduces the need to control subsidiaries and to coordinate their activities.
B) It allows the company to integrate scale-efficient operations and to cross-subsidize subsidiaries when necessary.
C) It provides an opportunity to balance the interests of subsidiaries with the needs of the headquarters.
D) It prevents subsidiaries from becoming too independent or uncontrolled.

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