When one entity controls another entity, the business combination results in which of the following types of relationship?
A) Parent-subsidiary
B) Investor-investee
C) Investor-associate
D) Parent-child

Question

Quizplus · Accepted Answer

A parent-subsidiary relationship occurs when one entity (the parent) has control over another separate entity (the subsidiary) by owning more than 50% of the subsidiary's voting stock. Therefore, this is the correct answer.

When One Entity Controls Another Entity, the Business Combination Results