Asked by Chris Gladden on Jul 25, 2024
Verified
The company whose stock is owned by the parent company is usually called the
A) controlled company.
B) subsidiary company.
C) investee company.
D) sibling company.
Subsidiary Company
A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.
Parent Company
A corporation that owns a majority of the shares of another company, thus controlling management and operations.
Controlled Company
A company in which a majority of its stock is owned or its operations are controlled by another entity.
- Ascertain the association and accounting practices for parent and subsidiary firms.
Verified Answer
BJ
Bailey JuniusJul 28, 2024
Final Answer :
B
Explanation :
A subsidiary company is a company whose stock is owned by another company, known as the parent company. The parent company has a controlling interest in the subsidiary, usually owning a majority of the subsidiary's stock. The subsidiary is therefore controlled by the parent company, but operates as a separate legal entity.
Learning Objectives
- Ascertain the association and accounting practices for parent and subsidiary firms.