Asked by Jenna D'Amour on Jul 28, 2024
Verified
Quantum Company exchanges some of its shares for some of the shares of Rocket Corporation. The exchange is used to create Space Inc., whose business activity is to hold the shares of the two companies. Space Inc. is
A) a holding company.
B) a parent corporation.
C) a subsidiary corporation.
D) a foreign corporation.
Holding Company
A corporation that owns enough voting stock in another company to control its policy and management.
Shares Exchange
The process of trading shares of stock between buyers and sellers on financial markets.
- Comprehend the notion of holding, parent, and subsidiary corporations through corporate dealings.
Verified Answer
SM
Sentell MitchellAug 01, 2024
Final Answer :
A
Explanation :
A holding company is an entity created to own the shares of other companies, which is exactly what Space Inc. is doing by holding shares of Quantum Company and Rocket Corporation.
Learning Objectives
- Comprehend the notion of holding, parent, and subsidiary corporations through corporate dealings.