Select the correct answer for each of the following questions.
Which of the following is not an appropriate reason for establishing a subsidiary?
a. The parent wishes to protect existing operations by shifting new activities with greater risk to a newly created subsidiary.
b. The parent wishes to avoid subjecting all of its operations to regulatory control by establishing a subsidiary that focuses its operations in regulated industries.
c. The parent wishes to reduce its taxes by establishing a subsidiary that focuses its operations in areas where special tax benefits are available.
d. The parent wishes to be able to increase its reported sales by transferring products to the subsidiary at the end of the fiscal year.
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