The company whose stock is owned by the parent company is called the
A) controlled company.
B) subsidiary company.
C) investor company.
D) sibling company.

Question

Quizplus · Accepted Answer

When a company buys a controlling interest in another company, the acquired company becomes a subsidiary of the parent company. Therefore, the correct choice is B. Choice A (controlled company) is not accurate as it does not specify who is doing the controlling. Choice C (investor company) is too general and could apply to any company that invests in another. Choice D (sibling company) is inaccurate as it implies an equal relationship between two companies that are actually in a parent-subsidiary relationship.

The Company Whose Stock Is Owned by the Parent Company