Asked by Filip Horá?ek on Jul 25, 2024
Verified
All of the shares of GMO Company are owned by Hybrid Inc. GMO Inc. is
A) a holding company.
B) a parent corporation.
C) a subsidiary corporation.
D) none of the choices.
Subsidiary Corporation
A company that is completely or partly owned and wholly controlled by another company, known as the parent company.
Holding Company
A company created to buy and own the shares of other companies, which it then controls.
- Grasp the concept of holding, parent, and subsidiary corporations through corporate transactions.
Verified Answer
KT
Kritika TrivediJul 31, 2024
Final Answer :
C
Explanation :
GMO Company is considered a subsidiary corporation because it is owned entirely by another company, Hybrid Inc., making Hybrid Inc. the parent corporation.
Learning Objectives
- Grasp the concept of holding, parent, and subsidiary corporations through corporate transactions.