In a situation where a controlling entity has delegated control to another entity, the parent is presumed to be:
A) the delegated party who is actively exercising control;
B) both the delegating party and the party to whom control has been delegated;
C) the entity who delegated the control;
D) neither entity as actual control has been lost.

Question

Quizplus · Accepted Answer

In this situation, the controlling entity is the one who delegated control to another entity. Therefore, the parent is the entity who delegated control, as they still hold ultimate responsibility for the actions taken by the entity to whom control was delegated.

In a Situation Where a Controlling Entity Has Delegated Control