If the investor holds 50% or more of the investee's outstanding common stock, then the investor is referred to as the parent and the investee is called the subsidiary.

Question

Quizplus · Accepted Answer

This statement is true. Holding 50% or more of an investee's outstanding common stock gives the investor control over the investee, making them the parent company and the investee the subsidiary.

If the Investor Holds 50% or More of the Investee's