Respuesta :
Alabama electronics, based in the united states, is determined to set up a new operation in Belgium. This stands for a greenfield venture, This is the form of wholly owned subsidiary.
What is wholly owned subsidiary?
A corporation whose common stock is 100% held by another company is referred to as a totally owned subsidiary. A parent corporation may acquire a firm and turn it into a totally owned subsidiary. A corporation whose common stock is 51% to 99% held by a parent company is referred to as a majority-owned subsidiary.
It can be argued that a firm is a wholly-owned subsidiary of another company and that parent company controls it when practically all of the company's outstanding shares are owned by that parent company. For instance, Marvel Entertainment, which makes movies, is fully owned by Walt Disney Entertainment.
Hence, Alabama electronics, based in the united states, is determined to set up a new operation in Belgium. This stands for a greenfield venture, This is the form of wholly owned subsidiary.
To learn more about wholly owned subsidiary refer to:
https://brainly.com/question/26005885
#SPJ4
