Company B is bound by contract to sell all its output to Company A.Company A is deemed to control Company B.

Question

Quizplus · Accepted Answer

Control in a business context typically refers to the ability to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Simply having a contract to buy all of a company's output does not necessarily grant control over the company's financial and operating policies.

Company B Is Bound by Contract to Sell All Its