Asked by karyme catano on Jul 07, 2024
Verified
Lender Inc. owns all of the shares of Mortgage Company. Lender Inc. is
A) a holding company.
B) a parent corporation.
C) a subsidiary corporation.
D) all of the choices.
Parent Corporation
A corporation that owns all of the shares of another corporation (known as its subsidiary).
Holding Company
A type of corporation that owns enough voting stock in another company to control its management and policies.
- Understand the principle of holding, parent, and subsidiary corporations via corporate transactions.
Verified Answer
FK
Faisal KayaniJul 11, 2024
Final Answer :
B
Explanation :
Lender Inc. is a parent corporation because it owns all of the shares of Mortgage Company, making Mortgage Company its subsidiary.
Learning Objectives
- Understand the principle of holding, parent, and subsidiary corporations via corporate transactions.