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

Minority Interest

The portion of subsidiary companies' equity (net assets) that is not owned by the parent company; represents the outside shareholders' percentage of ownership in the subsidiary.

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations, making the latter a subsidiary.

Outstanding Stock

The stock in the hands of stockholders.