A Subsidiary Is an Entity That

question 19

Multiple Choice

A subsidiary is an entity that:

• A) is controlled by another entity.
• B) exercises control over a parent entity.
• C) has the power to control a parent entity.
• D) has significant influence over a parent entity.

---

Definitions:

Equitable

Characterized by fairness and impartiality; the fair distribution of resources and opportunities.

Efficient

Describes a process that achieves its goals with the least waste of time and effort.

Lump-Sum Tax

A tax that is the same amount for every person.

Deadweight Loss

A cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.