What is a "subsidiary"?
A)An entity where unanimous consent is required by the owners.
B)An entity that is controlled by another entity.
C)An entity over which the investor has the ability to participate in decisions affecting the entity's operations.
D)An entity that sells shares to the public.

Question

Quizplus · Accepted Answer

A subsidiary is a company that is controlled by another company or entity, known as the parent company. The parent company holds a majority of the subsidiary's voting stock, which gives it control over the subsidiary's operations and management. This is why choice B is the best answer.

What Is a "Subsidiary