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

Question

Quizplus · Accepted Answer

This is correct. When an investor holds more than 50% of the investee's outstanding common shares, then the investor has control over the investee and is considered to be the parent company, while the investee is the subsidiary.

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