search query: @indexterm SUBSIDIARITY / total: 11
reference: 6 / 11
| Author: | Myers, R. |
| Title: | Is a Subsidiary in Your Future? |
| Journal: | Journal of Accountancy
2002 : JUN, VOL. 193:6, p. 73-80 |
| Index terms: | SUBSIDIARITY SUBSIDIARY COMPANIES COMPANIES LIFE CYCLES COSTS |
| Language: | eng |
| Abstract: | Certain developments in a company's life cycle can trigger the need for a subsidiary, such as the launch of a new venture with different risk characteristics than the company's existing line of business or the opening of operations in a new state or foreign country. Other times, companies need to form subsidiaries to facilitate the potential sale of part of the company. The author states that from an accounting perspective, creating a subsidiary makes sense because it allows companies to enjoy substantial tax benefits and creditor protections. The costs involved can be as little as a few thousand dollars for smaller companies, and when costs are higher, they are almost always nominal compared with potential rewards. |
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