Suzie's Kitchen sells major kitchen appliances. The Kitchen Dollar provides financing strictly to buyers of Suzie's appliances. The Kitchen Dollar is a wholly owned subsidiary of Suzie's Kitchen. The Kitchen Dollar is called a:

Question

Quizplus · Accepted Answer

A captive finance company is a subsidiary whose purpose is to provide financing to customers buying the parent company's product. In this case, The Kitchen Dollar provides financing exclusively for buyers of Suzie's Kitchen appliances, making it a captive finance company.

Suzie's Kitchen Sells Major Kitchen Appliances