Need a long and detailed self explanatory solution for the following question What are the relative advantages and disadvantages of settings up a wholly owned subsidiary instead of a joint venture?
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Need a long and detailed self explanatory solution for the following question
- What are the relative advantages and disadvantages of settings up a wholly owned subsidiary instead of a joint venture?
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- The difference between subsidiaries and associates can be said to revolve aroundpower and control. Critically evaluate this statement, giving examples of when a parent company would consider investing in either a subsidiary or an associate.Multiple Choice Questions Which of the following statements is correct? All joint arrangements which are not structured through a separate vehicle are classified as joint ventures. For a joint venture, the rights pertain to the rights and obligations associated with individual assets and liabilities, whereas with a joint operation, the rights and obligations pertain to the net assets. Where the joint operators have designed the joint arrangement so that its activities primarily aim to provide the parties with an output it will be classified as a joint venture. In considering the legal form of the separate vehicle if the legal form establishes rights to individual assets and obligations, the arrangement is a joint operation. If the legal form establishes rights to the net assets of the arrangement, then the arrangement is a joint venture. A 50:50 joint operation was commenced between two participants. Mary Company contributed cash of $90 000, and Strickland Company contributed…__________ entail the creation of a third-party legal entity, whereas __________ do not. Licensing agreements; joint venturesJoint ventures; strategic alliancesStrategic alliances; joint ventures Franchising agreements; strategic alliances
- Consolidated financial statements are required in which ofthe following situations?a. Only when a company can exert significant influenceover another company.b. Only when a company has a passive investment inanother company.c. Only when a parent company can exercise control overits subsidiary.d. None of the above.What is a controlling financial interest? How did the FASB define this in FIN 46(R)? What are typical difficulties in ascertaining whether control exists where perhaps no voting interest is actually maintained? Please choose a recent business combination and address what you feel their motives were for the combination. Do you see any problems with their decision to combine?What does it mean that the members of the joint venture company can retain own separate identity ??
- _________ entail the creation of a third-party legal entity, whereas __________ do not. Licensing agreements; joint venturesJoint ventures; strategic alliancesStrategic alliances; joint venturesFranchising agreements; strategic alliancesWhat is the relationship between Hlayisani Ltd and Mashele Ltd?Select one:a.Venturer and joint venture.b.Investor and associate.c.Parent and subsidiary.d.Venturer and joint operation.Explain disadvantages of wholly owned subsidries. (Answer should be free of plagiarism,it must contain proper facts and figures and examples from diversified countries)
- 1 Which of the following is a characteristic of a business combination that should be accounted for as an acquisition? Group of answer choices a. The combination must involve the exchange of equity securities only. b. The transaction may be considered to be uniting of the ownership interest of the companies involved. c. The transaction establishes an acquisition fair value basis for the company being acquired d. Two companies may be about the same size and it is difficult to determine the acquired company and acquiring company.Which of the following are not related parties? * A company and its Chief Executive Officer Two or more subsidiaries with the same parent Two co-venturers of a common joint venture business. A parent and its subsidiaryWhich of the following statements best describes the difference between a merger and joint venture? a. None of these statements provided differences the two. b. In a merger , two firms combine financial resoures to establish a new firm c. in a joint venture the bidding firm takes control o fthe control of the joint project. d. In a joint venture , firms agree to cooperate in pursuit of joint goal
