All of the following are advantages of holding companies EXCEPT
A. possible state tax benefits realized by each subsidiary in its state of incorporation.
B. since each subsidiary is a separate corporation, the failure of one company should cost the holding company no more than its investment in that subsidiary.
C. reduced federal corporate taxes due to the holding company status.
D. lawsuits or legal actions against a subsidiary will not threaten the remaining companies.
Answer:C
All of the following are advantages of holding companies EXCEPT
A. possible state tax benefits realized by each subsidiary in its state of incorporation. B. since each subsidiary is a separate corporation, the failure of one company should cost the holding company no more than its investment in that subsidiary. C. reduced federal corporate taxes due to the holding company status. D. lawsuits or legal actions against a subsidiary will not threaten the remaining companies.