A company that owns more than 50% of the ordinary shares of another entity is known as the parent company and usually prepares consolidates financial statements.

Question

Quizplus · Accepted Answer

This statement is true. When a company owns more than 50% of another entity, it is considered the parent company and is required to prepare consolidated financial statements that combine the financial results of both companies.

A Company That Owns More Than 50% of the Ordinary