The company that owns 100 percent of another company's stock is called the ________.The company that is controlled by another company is called the ________.
A) majority interest; minority interest
B) controlling interest; noncontrolling interest
C) parent; subsidiary
D) subsidiary; segment

Question

Quizplus · Accepted Answer

The company that owns 100 percent of another company's stock is commonly referred to as the parent company while the company that is controlled by another company is called its subsidiary. These terms are commonly used in business and finance to describe the relationship between two companies. Choice A and B are not accurate descriptions of the relationship between a parent and subsidiary company. Choice D is a term used to describe a smaller segment within a larger company, and not necessarily a company that is controlled by another.

The Company That Owns 100 Percent of Another Company's Stock