DD
Answered
C Co. currently owns 80% of D Co. and several other subsidiaries. C Co. is interested in gaining control of H Co. Why might C Co. allow D Co. to acquire H Co., rather than purchasing H Co. directly?
On Jul 29, 2024
Indirect control (such as a father-son-grandson structure, as proposed by C Co.) may be used to group subsidiaries by product line, geographic location, or other criteria. The use of indirect control may establish clearer and shorter lines of communication for day-to-day operations and improve responsibility reporting.