Eastpac Bank has lent Alexandra Ltd $500 000. Part of the loan contract prevents Alexandra from borrowing money in the future from other banks without the permission of Eastpac. As a result of this relationship:

Question

Quizplus · Accepted Answer

The loan contract does not establish a parent-subsidiary relationship between the two parties. Although Eastpac has some level of control over Alexandra's borrowing activities, this does not necessarily mean that it has the ability to direct all of its relevant activities, which is a key feature of a parent-subsidiary relationship.

Eastpac Bank Has Lent Alexandra Ltd $500 000