Asked by Cameryn Stewart on May 09, 2024
Verified
A company that has the majority of its voting shares owned by a parent company is called the
A) controlled company.
B) subsidiary company.
C) investee company.
D) sibling company.
Subsidiary Company
A company that is completely or majority-owned by another corporation, known as the parent company.
Parent Company
A corporation that owns enough voting stock in another corporation to control its management and operations.
- Understand the prerequisites for consolidated financial statements and grasp the idea of a subsidiary in the context of investment accounting.
Verified Answer
SC
Susan CantuMay 10, 2024
Final Answer :
B
Explanation :
A subsidiary company is one that is controlled by another company, typically referred to as the parent company, through the ownership of more than half of its voting stock.
Learning Objectives
- Understand the prerequisites for consolidated financial statements and grasp the idea of a subsidiary in the context of investment accounting.
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