Purchase Solution

Acquiring Stocks of Companies to Operate as Subsidiary

Not what you're looking for?

Ask Custom Question

What factors may make it attractive for a company to complete a business combination by acquiring the stock of another company and operating it as a subsidiary?

Purchase this Solution
Solution Summary

This solution discusses the factors that make it attractive for a company to complete a business acquisition by acquiring the stock of another company and operating it as a subsidiary. Additionally, the solution includes one reference source.

Solution Preview

Hi - hope this helps.

It can be attractive for a company to complete a business combination by acquiring the stock of another company and operating it as a subsidiary. Companies that are interested in expanding overseas or into a new field may find this option attractive because it allows the company to expand without as much ...

Solution provided by:
Sally Baldwin, Ed.D
Education
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
Recent Feedback
  • "Thk u"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
Purchase this Solution
Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Basics of corporate finance

These questions will test you on your knowledge of finance.

View More Free Quizzes
Related BrainMass Solutions

  • Kellogg Company Convenience Foods Annual Report

    The holding company is called the parent company in this case and the other company whose voting stocks are owned is called subsidiary. Other advantages of owning majority of voting stocks are: 1.

  • Dorchester, Inc.

    Circuit City Global Sourcing Limited operates as a subsidiary of Circuit City Stores Inc." (Bloomberg Businessweek, 2011).

  • Merger and Acquisition

    442967 Merger strategy: pros and cons; Operate acquisition as a subsidiary: pros and cons You are part of a company who has made the strategic decision to acquire another company.

  • The Characteristics of a Business Combination

    The acquired subsidiary must be smaller in size than the acquiring parent. GAAP requires that companies which acquire other companies record the business combination as an acquisition at the purchased company's fair market value.

  • Triangular Acquisitive Reorganization

    This type of acquisition should however, qualify as a merger under the state company law. Another example is that of the acquiring company having a corporate acquisition subsidiary.

  • Financial Ratio Analysis: Wal-Mart and Sears

    Two references Wal-Mart and Sears are my two organizations The chief executive officer of your organization has asked you to compare the organization you are thinking of acquiring with a competitor.

  • Accounting Concept Definitions

    C)The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company. D)The transaction may be considered to be the uniting of the ownership interests of the companies involved.

  • The solution to Advanced Accounting - Balance Sheet Reporting

    The two companies continued to operate as separate entities subsequent to the combination. Immediately prior to the combination, the book value and fair value of the companies' assets and liabilities were as follows: B. N.

  • High Tech Firm Acquisition

    This allows the acquiring company to form a subsidiary. The new entity purchases the acquired company's stock in exchange for the stock of the parent company.

View More Related Solutions