Asked by Farhan Malik on Jun 09, 2024
Verified
Parker Company owns 83% of the outstanding stock of Tadeo Company. Parker Company is referred to as the
A) parent
B) minority interest
C) affiliate
D) subsidiary
Outstanding Stock
Shares of a corporation that have been issued and are currently held by investors, including public shareholders and the company's officers and insiders.
Parent Company
A corporation that owns a controlling share of the stock in another company, making the latter a subsidiary.
- Attain insight into the concepts of parent and subsidiary businesses.
Verified Answer
KA
Katrina AnthonyJun 13, 2024
Final Answer :
A
Explanation :
Parker Company is referred to as the parent company because it owns a majority (more than 50%) of the outstanding stock of Tadeo Company, indicating control over the latter.
Learning Objectives
- Attain insight into the concepts of parent and subsidiary businesses.