The Equity in a Subsidiary That Is Not Attributable to a Parent

question 14

Multiple Choice

The equity in a subsidiary that is not attributable to a parent is known as a/an:

• A) external interest.
• B) attributable interest.
• C) non-direct interest.
• D) non-controlling interest.

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Definitions:

Obligor

A person or entity legally obligated to provide a benefit or payment to another in a contract.

Assignee

An individual or entity to whom rights or responsibilities are legally transferred from another.

Novation

The act of replacing an old obligation with a new one, substituting a new party for the original party, or changing the terms of an existing obligation.

Delegation

The assignment of authority and responsibility to another person to carry out specific activities while retaining the ultimate accountability.