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Why wholly owned subsidiary
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A corporation that has a parent company owning 100% of its common stock is known as a wholly-owned subsidiary. With fully owned subsidiaries, the parent firm can diversify its product offerings, improve management, and perhaps even lower risk. A wholly-owned subsidiary by definition has no responsibilities to minorities.

A wholly-owned subsidiary has a number of benefits. A wholly owned subsidiary encourages diversification, offers reduced responsibility, and is eligible for tax benefits.
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