What is the name given to a subsidiary of a firm that exists solely to handle the credit functions of the parent company?
A)Internal credit organization
B)Bank
C)Credit association
D)Captive finance company
E)Credit union

Question

Quizplus · Accepted Answer

The term "captive finance company" refers specifically to a subsidiary of a firm that is established solely to handle the credit functions of the parent company. In other words, it is a financial institution that is wholly owned and controlled by a larger company, and provides financing options for customers of that company.

What Is the Name Given to a Subsidiary of a Firm