A subsidiary differs from a branch in that a subsidiary ________.
A) is just a unit or a part of the parent with no separate legal status
B) is a co-parent company
C) is considered an agent of the parent company governed by an agency contract, but not owned by the company
D) is a company organized as a separate legal entity that is owned by the parent

Question

Quizplus · Accepted Answer

A subsidiary is a company that is organized as a separate legal entity and is owned by the parent company. It operates independently of the parent and has its own assets, liabilities, and profits. This differs from a branch, which is not a distinct legal entity and is simply an extension of the parent company.

A Subsidiary Differs from a Branch in That a Subsidiary