When one entity controls the business operations of another entity, the business combination results in the following type of relationship:
A) parent-subsidiary;
B) partnership;
C) a merger;
D) dual-listed.

Question

Quizplus · Accepted Answer

A parent-subsidiary relationship is formed when one entity, the parent company, controls the business operations of another entity, the subsidiary. The parent company usually owns a majority of the subsidiary's shares, giving it control over the subsidiary's decision-making processes. This type of relationship is common in corporate structures, where a larger company may acquire smaller companies to expand its operations or diversify its business offerings.

When One Entity Controls the Business Operations of Another Entity