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sir what is the meaning of doing consolidation if subsidiary activities are different from rest of group and if subsidiary have poor performance. is it wise decision to buy subsidiary for the manager????
Subsidiaries are acquired for a number of different reasons and if it has a poor performance currently then it could be bought by the parent as they think they have the potential to improve the performance of the subsidiary. Although the activities may be different the additional profit generated can help increase cash generated that can be used within the group.