What Are the Differences Between a Controlled Group and an Affiliated

question 45

Essay

What are the differences between a controlled group and an affiliated group?

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Definitions:

ROE

Return on Equity, which measures a corporation's financial productivity, is computed by dividing the net income by the total equity of shareholders.

D/E Ratio

The debt-to-equity ratio, a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Assets

Resources owned by a business or individual that have economic value and can be used to meet debts, commitments, or legacies.

Debt/Equity Ratio

A gauge illustrating the financial reliance of a company on debt versus equity for asset support.