Asked by Anthony Vasquez on Jun 27, 2024
Verified
A company that owns more than 50% of the common stock of another company is known as the
A) charge company.
B) subsidiary company.
C) parent company.
D) management company.
Parent Company
An entity that owns enough voting stock in another corporation to control its management and operations.
Subsidiary Company
A company controlled by another company, referred to as the parent company, through ownership of more than 50% of its voting stock.
- Determine the connection and financial management approach for parent and subsidiary entities.
Verified Answer
SL
Shaee LoveeJun 30, 2024
Final Answer :
C
Explanation :
A company that owns more than 50% of the common stock of another company is known as the parent company. This is because it has significant control over the subsidiary company's operations and is responsible for making strategic decisions on its behalf. The subsidiary company, on the other hand, is controlled by the parent company but operates as a separate legal entity.
Learning Objectives
- Determine the connection and financial management approach for parent and subsidiary entities.
Related questions
If One Company Owns More Than 50% of the Common ...
The Company Whose Stock Is Owned by the Parent Company ...
In August 20X6,Caesar Ltd Acquired the Issued Ordinary Shares of ...
A Corporation Controlled by Another Corporation That Owns All or ...
Parker Company Owns 83% of the Outstanding Stock of Tadeo ...